25 cos call off IPOs due to sluggish market

Mostly from the real estate and power sectors, these 25 IPOs were together estimated to raise about Rs 31,000 crore worth capital to fund the companies’ business expansion plans.
The BSE benchmark Sensex has lost more than 23 per cent since the beginning of 2011 and hit its 52-week low of 15,478.69 on November 23, 2011.

“The bad mood of capital markets have led 25 companies to call off their IPOs during the 2011 calendar year. The probable amount that these companies were planning to raise was to an aggregate of Rs 31,000 crore,” brokerage firm SMC Global Securities said in a report.
Even after getting Sebi approval, these companies could not launch their IPOs within the valid period of one year from the date of approval, mainly on account of the ongoing turmoil in the capital markets.

These 25 companies having cancelled their IPOs included a host of the real estate players.  Besides, a number of power sector companies have also called off their IPO plans. Also, the government’s disinvestment programme to bring public issues of several blue-chip PSUs couldn’t take off.