Over 60 cos await Sebi nod for share sale worth Rs 50,000 crore

According to data available with Sebi and various investment bankers, more than 60 companies are waiting for the go-ahead signal from the market regulator for their planned sale of shares — most of them through initial public offers (IPOs) and others through rights issues or sale of shares to their existing shareholders.

Shares worth an estimated Rs 50,000 crore could be sold in these public and rights issues and the amount could even double if the government steps up its divestment process, believe merchant bankers, and a good market response leads to more companies joining the fray.

The past few days, in particular, have seen an intensified rush to file the draft IPO prospectus with the Securities and Exchange Board of India (Sebi). In the last week of September alone, more than 20 companies sought the regulator’s nod to raise over Rs 20,000 crore.

These IPO-bound companies include Anil Ambani group’s telecom tower firm Reliance Infratel and half a dozen realty companies like Sahara Prime City, Emaar MGF, Lodha Developers, Ambience Ltd, DB Realty and Kumar Urban Development.

Reliance Infratel is seeking to raise about Rs 5,000 crore, while Emaar MGF, Sahara Prime City and Lodha Developers are eyeing more than Rs 3,000 crore each.

Out of the more than 60 companies awaiting regulatory go-ahead for their proposed share sales, about one-fourth are looking to do so through rights issues, while the remaining have proposed to raise funds through IPOs.

Those with rights issue plans include REI Agro Limited, Dewas Metal Sections Limited, Gulf Oil, Uttam Sugar, IBN 18 Broadcast, Swaraj Mazda, City Union Bank, Hinduja Foundries and Sadbhav Engineering. The IPO-bound companies include Glenmark Generics, JSW Energy, Cantabil Retail, Den Networks, Hathway Cable, Mandhana Industries and DQ Entertainment.

Various firms have raised over Rs 1,00,000 crore through sale of shares so far this year — but most of these fund-raising has been through the QIP route or sale of shares with institutional investors, and less than one-fifth of it has been through IPOs.  However, with the stock market index Sensex doubling from its lows in October last year and coming near 17,000-points level, the companies are warming up to the IPO route of raising funds. Those companies having raised funds through IPO this year include two public sector companies NHPC and Oil India Ltd and about a dozen private sector firms like Adani Power, Pipavav Shipyard, Mahindra Holidays, Globus Spirits, and Edserv Softsystems.

Besides, another private sector entity Indiabulls Power, whose group companies operating in financial services, brokerage, real estate and retail sectors are already listed on the bourses, is looking to raise over Rs 1,700 crore through an IPO, which would open on Monday.

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