IPOs raise record Rs 27k cr in April-September

Indian companies raised a record close to Rs 27,000 crore through initial public offerings in the first half of the current fiscal and an impressive pipeline is already in place for coming months.

“Besides, over a dozen firms, including New India Assurance Company, Reliance Nippon Life Asset Management and HDFC Standard Life Insurance Company, have lined up their IPOs to raise funds totalling Rs 35,000 crore in coming months,” Dinesh Rohira, founder and CEO at 5nance.com, said.

Adding to the depth of the IPO market, companies from diverse sectors like insurance, healthcare, education, bank, cable TV and shipping have made their way to the IPO space during the period under review.

According to the latest data compiled from stock exchanges, 19 companies garnered over Rs 26,720 crore through their respective IPOs in April-September of the ongoing financial year, much higher than Rs 16,535 crore raised by 15 firms in the year-ago period.

Prior to that, companies had raised a record Rs 21,244 crore from initial public offers (IPOs) in the first half of 2007-08. Proceeds of the IPO were used to fund business expansion plans, pay debt, meet working capital requirements and for other general corporate purposes.

“One of the big reasons why we are seeing so many IPOs hitting stock markets is the uplift in investor sentiment, which is also reflected in the returns that the Nifty gave in the first half of the year,” Rohira added.

“Further, Sebi’s proactive regulations and Prime Minister Narendra Modi-led government’s pro-business policies have helped both companies and investors shrug off fears and lap up opportunities to become part of the India growth story,” he noted. The IPO chart in the first half of the current fiscal was led by SBI Life Insurance (Rs 8,400 crore), followed by ICICI Lombard General Insurance (5,700 crore), AU Small Finance Bank (Rs 1,912 crore), Eris Lifesciences (Rs 1,741 crore), among others.