The Hindu Business Line : `Banking, financial services garner more funds from IPO'

THE banking and financial services sector grossed the largest amount of Rs 4,099.74 crore from IPOs till mid-August this fiscal, followed by textiles, power, IT, media, pharma, and steel, according to an Assocham Eco Pulse (AEP) study. Collectively, the IPOs tracked by the study raised Rs 5,819.76 crore.

According to data collected by AEP, there were 16 IPOs against seven in the comparable period of the previous fiscal. However, there is a considerable drop in the fund mobilisation in the current fiscal, amounting to only a third of the Rs 18,835 crore raised earlier.

"The major reason for this drop is that the previous fiscal saw IPOs of giants like ONGC, TCS, and ICICI Bank," said Mr Mahendra K. Sanghi, Assocham President.

Buoyed by the post-quota opportunities, the textile sector raised Rs 630.55 crore to fund modernisation and upgradation plans, Mr Sanghi said.

Upbeat on the earning potential of the textile firms in the quota-free market of the West, investors lapped up these issues, which were offered at prices ranging between Rs 150 and Rs 425.

Thanks to the larger size of issues, the banking and financial sector was able to raise the largest amount, with issue price ranging between Rs 34 for IDFC and Rs 250 for OBC.

Although the power sector saw only one IPO, of Jai Prakash Hydro Power, it garnered Rs 576 crore.

Allsec Technologies and 3i Infotech were the two candidates in the IT sector, raising as much as Rs 242 crore from the primary market.

Media and entertainment sector IPOs attracted a lot of investors. IndiaInfoline and Shringar Cinemas were the two candidates; together they mopped over Rs 133 crore, with issue prices of Rs 76 and Rs 53 respectively. In the pharmaceutical sector, Nectar Lifesciences managed to raise Rs 94 crore.

Shri Ramrupai Balaji Steel was the sole candidate in the steel sector; it raised Rs 44 crore in the primary market. Last fiscal, the maximum amount of funds through IPO was generated by ONGC - Rs 10,160 crore, with an issue size of 14 crore shares.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Finance Ministry agrees to amend tax laws — Fund of Funds to be categorised into equity, debt

Global MFs' asset remains flat

High market prices affect open offers of MNCs

Cartoon

You gotta hit the bull's-eye

Weak ending for all except Sify, Rediff.com

`Daily, it is about 16,000 requests for demat'

`Banking, financial services garner more funds from IPO'

Oil may soon begin to hurt

Oil issue may set the direction