Bulls get into act as 11 IPOs set for Sept debut

In fact, the week is is slated to be the busiest in the last 15-years for the primary market, with eight companies seeking to raise around Rs 3,000 crore through public offers, in addition to three already underway.

The initial public offers of eight small and medium scale companies, including Cantabil Retail and Ramky Infrastructure, are opening this week. The combined value of these IPOs is Rs 2,853 crore. Besides, three issue which opened last week are underway to raise Rs 612 crore. So, in all, people have the choice to invest in as many as 11 companies in a single week, highest since 2007.

Among others include Orient Green Power Limited with an issue size of Rs 900 crore, Ramky Infrastructure Limited (Rs 530) crore, VA Tech Wabag (Rs.500 crore), Electrosteel (Rs 285 crore), Tecpro Systemts (Rs 265 crore) Ashoka Buildcon (Rs 225 crore), Cantabil Retail (Rs 105 crore) and Gallant Ispat (Rs 40.5 crore). “The current week starting September 20, 2010, features 11 IPOs (initial public offerings) which remain open. This will be the busiest week in the Indian primary market’s history after 1995. Even during the red-hot bull market of 2007, no single week featured 11 IPOs,”  SMC Global Securities Equity Head Jagannadham Thunuguntla said.

He added that the last high was in February 2007, when 10 IPOs had hit the capital market in one week. Analysts believe that there is enough appetite in the market to absorb these issues.

“There is enough appetite among investors, and large number of IPOs are providing more choices to them. They can choose issue from a variety of options,” Enam Securities Managing Director Yogesh Kapur said. Apart from some big IPOs such as that of JSW Energy and Adani Power, the fiscal also saw divestment of the government’s stake in NMDC and NTPC through the follow-on offers. Meanwhile, the 30-scrip popular Sensex of the Bombay Stock Exchange (BSE) moved up a handsome 311 points or 1.59 percent to close Monday at 19,906.1 points. It touched an intra-day high of 19,927.3 points. 

Similarly, at the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty rose 1.62 percent higher to 5,980.45 points.

The Sensex soared up to 10.7 percent till date fuelled by capital inflows from foreign institutional investors (FIIs). “The liquidity, which was flooding the secondary market, is all set to flood the primary market as well,’ said Thunuguntla.