The Hindu Business Line : IPO mop-up lower at Rs 266 crore in October

New Delhi, Nov. 9 In a month of severe volatility, the public issue mop-up took a beating in October as the total realisations stood at just Rs 266 crore — the lowest so far in 2007.

In contrast, companies raised over Rs 3,800 crore from public offers during September.

While the realisation from six initial public offerings (IPOs) yielded Rs 266 crore, there were no follow-on public offers (FPOs) during October, according to monthly-data made available by PRIME, a database dedicated to the primary capital market.

The combined IPO and FPO mobilisation was pegged at Rs 276.36 crore in October, 2006 — where IPOs garnered Rs 170 crore and FPOs Rs 106 crore.

Mobilisation

“The market has been uncertain over the last two months and since public issue requires at least two months of preparation and decision-making, many IPO are on hold. However, November is expected to see substantial mobilisation.

The initial signs of investor confidence are already visible in the recent IPOs of Religare, and Mundra,” Mr Prithvi Haldea, Managing Director of PRIME, said.

The IPO line-up in October included Religare Enterprises Ltd (a financial services provider led by the promoters of Ranbaxy Laboratories) whose issue was subscribed over 160 times. The issue, which opened on October 29 and closed on November 1, raised Rs 140 crore with IPO price fixed at the higher end of its price-band at Rs 185.

The other companies were Rathi Bars, Allied Computers International (Asia), SVPCL, Varun Industries and Barak Valley Cements Ltd.

The IPO realisation had touched its high in June, when the public issue mop-up stood at Rs 11,906 crore.