44 IPOs worth Rs 47,800 crore hit capital market in fiscal 2009-2010

According to an analysis, about 44 companies, including the public sector undertakings, raised a whopping Rs 47,867 crore between April 2009 and March 31, 2010, through initial and follow-on public offers.  Apart from some big initial public offers, the fiscal also saw divestment of government’s stake in NMDC and NTPC through follow-on offers.

During financial year 2009-10, Bombay Stock Exchange’s benchmark Sensex registered a whopping gain of over 80 per cent, surging from 9,708.50 points as on March 31, 2009.
Big FPO offers

The Rs 9,967-crore follow-on public offer (FPO) of NMDC was the biggest public offer of the fiscal, followed by NTPC (Rs 8,478 crore), NHPC (Rs 6,038 crore) and JSW Energy (Rs 3,818 crore). With the stock market re-emerging as preferred place for fund raising, about 28 companies came out with IPOs during April’09-Jan’10 raising a total of Rs 23,731.88 crore, almost 10 times higher than Rs 2,058.51 crore mobilised by 20 companies during the same period in 2008-09.

According to marketmen, in the coming fiscal too, the market will see a large number of public offers as the Centre has set a target of raising Rs 40,000 crore through divestment during fiscal year 2011. Besides, a number of companies have already approached the capital market regulator SEBI to get approval for entering the market. Some big public offers expected in the current financial year include, Oil India Ltd (Rs 2,777 crore), Adani Power (Rs 3,016 crore), Rural Electrification Corporation (Rs 3,530 crore) and DB Realty (Rs 1,500 crore).

“Even the pipeline is looking strong. However, whether this pipeline materialises or not, depends largely upon how much the secondary markets would be able to sustain going forward,” a market player said.