The Hindu Business Line : IPO mop-up picks up speed in September

New Delhi, Sept. 29 As the stock market scaled new heights, public issue mop-up by Indian companies too picked-up speed during September with realisations crossing Rs 3,836 crore, compared to just about Rs 665 crore in August.

The mobilisation in September is also significantly higher than about Rs 882 crore raised in the year-ago period, according to monthly data by PRIME, a database dedicated to the primary capital market.

“August was a bad month for IPOs as markets were not faring well — IPOs are closely linked to the secondary market. In contrast, the last one month saw a huge rise in the Sensex, as a result of which IPOs that were in planning hit the market. The pipeline still remains strong, and if the markets continue to do well, October could be a buoyant month for IPOs and FPOs,” said Mr Prithvi Haldea, Managing Director, PRIME.

The IPOs that hit the market in September include Kaveri Seed Company, Dhanus Technologies, Koutons Retail India, Consolidated Construction Consortium, Supreme Infrastructure India, Saamya Biotech (India), Circuit Systems (India) and Maytas Infra Ltd. However, the initial public offer by state-run Power Grid Corporation of India Ltd (over Rs 2,900 crore) alone accounted for a bulk of September realisations.

June status

It may be recalled that IPO mop-up in June had exceeded all expectations, mobilising close to Rs 11,906 crore (Rs 9,187.5 crore from DLF IPO), while the FPOs had garnered another Rs 10,570.7 crore.

The public issue realisations in January stood at about Rs 2,786 crore, in February at Rs 4,503 crore, and in March at about Rs 460 crore – when it touched this year’s low. It recovered somewhat in April to touch Rs 682.5 crore before dropping to Rs 494 crore in May. The realisation in July had been pegged at Rs 3,603 crore.

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