Business Daily from THE HINDU group of publications
Saturday, Jun 06, 2009
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Business Daily from THE HINDU group of publications Saturday, Jun 06, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Financial Services Markets - IPOs
Eighteen companies have already filed their draft red herring prospectus with SEBI and are biding their time to approach the market. Sharvari Patwa Mumbai, June 5 New demat account registrations have seen an increase over April and May in likely anticipation of big ticket public sector undertakings IPOs (Initial Public Offerings) following the recent announcements coming from government, said market-men. Around 1.13 lakh new demat accounts have been added in May and 71,000 in April, according to the data collated from National Securities Depository Ltd (NSDL) and Central Depository Services Ltd. This is after having been on a continuous decline for several months up to March this year. While the rise over April and May is still small, the last two weeks especially have witnessed a substantial surge in new demat accounts, said Mr R Kalyanaraman, Senior Vice-President - Client Acquisition, Sharekhan Ltd. A host of factors such as the rising stock markets, a stable government and some likely IPO action is prompting retail investors to enter the equity markets after a lull. New demat accounts grew at the rate of 0.77 per cent in May, and 0.48 per cent in April; they grew only 0.15 per cent in March. There were 147.54 lakh active demat accounts in May, compared with 146.41 lakh accounts in April. “Although there has not been a substantial rise in new demat accounts in the past month, the ground level activity we see (enquiries and so on) suggests that there is a spurt of new entrants,” said Mr Vijay Kumar Goel, Associate Director, Broking & Distribution, Motilal Oswal Financial Services. The numbers will swell once the IPO season starts, said market-men: “With the new government likely to go for PSU disinvestment in a big way, it is obvious that this will result in a lot of IPOs in the future, said Mr Kalyanaraman. Eighteen companies have already filed their Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India and are biding their time to approach the market. According to broking firm SMC Capitals, the 18 IPOs are likely to raise funds worth Rs 7,405 crore; among them are some big ticket PSU IPOs such as National Hydroelectric Power Corporation, Oil India and Pipavav Shipyard. SEBI’s recent trading ban on some entities in the Pyramid Saimira case, and the more recent ban on 26 entities for synchronised trading, have actually added to investor confidence, said market-men. This is a positive signal for investors because this means that the regulatory mechanisms are in place and this is encouraging for new investors, said Mr Prasanth Prabhakaran Sr. Vice-President & Sales Head – Broking, Kotak Securities. OIL to file fresh draft prospectus New issues may wait for Budget cues Demat accounts move into slow motion now Law soon on forfeiting frozen demat assets More Stories on : Financial Services | IPOs | Stock Markets
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