4 cos allow IPO deadline to lapse on uncertain market

Suresh P. Iyengar Mumbai | Updated on November 15, 2017

Fate of 10 more issues to unfold in 2 months

Four companies deciding not go through with their public issues underscores the uncertainty in the economy and the market. The approval given by capital market regulator SEBI to the four companies to raise Rs 700 crore expired on January 18. And the fate of another 10 IPOs, for raising Rs 4,210 crore, will unfold in the next two months.

Corporate houses have to launch their IPOs within a year after getting SEBI consent.

Mr Jagannadham Thunuguntla, Strategist and Head of Research, SMC Global Securities, said that of the 10 companies waiting in the wings, two may launch their IPOs if the current market momentum continues till March.

‘Lot of uncertainty'

“At present, there is lot of uncertainty in the market with elections slated in five States, including the keenly watched Uttar Pradesh. Besides, the policy decision taken in the Union Budget will also sway investor mood,” he added.

The four companies whose approvals expired include Micromax Informatics (issue size: Rs 426 crore), Pride Hotels (Rs 125 crore), Betul Oil (Rs 100 crore) and Tara Jewels (Rs 50 crore).

Earlier this month, Goodwill Hospital and Research Centre had to recall Rs 62-crore IPO due to poor response from investors.

Misses the bus

Last year, 29 IPOs to raise Rs 32,400 crore could not hit the market within the SEBI-prescribed timeline of one year due to adverse market conditions.

Some of these companies include: Reliance Infra Tel (Rs 5,000 crore), Lodha Developers (Rs 2,500 crore), Ambiance Ltd (Rs 1,293 crore), Sterlite Energy (Rs 3,000 crore), BPTP Ltd (Rs 1,500 crore), Gujarat State Petroleum Corporation (Rs 3,000 crore), Jindal Power (Rs 7,200 crore) and Lavasa Corporation (Rs 1,600 crore).


Published on January 27, 2012

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