Dozen firms eye capital markets

Influx of IPOs next year

With the improved fundamentals and fiscal reforms push, the market sentiment is up, which made the companies to visit capital markets for their financial needs.

According to available data, there are about 13 companies which have filed the Draft Red Herring Prospects (DRHP) till date, including Videocon D2H and Rashtriya Ispat Nigam Ltd.

All these companies are targeting to list their shares on the bourses in the current fiscal itself. And there are companies which are looking to go for second public offers called Follow-on Public Offer (FPO).

According to market experts, BJP-led NDA’s landslide win in the General elections has perked up investor sentiment and prompted companies to file IPO papers.

Not surprisingly, Narendra Modi elevation to the country’s top post has had a major bearing on the secondary markets and subsequently as an off-shot impacting both benchmarking indices – Sensex and Nifty – to unprecedented highs. This has further improved, thanks to investor sentiment in the primary markets that been enhanced, opines analysts.

In fact, most of these companies have filed their initial papers only after the general election. These filings come at a time when the equity markets are on an upswing in the current year in the wake of bullish investor sentiments.

Of these companies, the SEBI has already given final nod to go for public offer. They include Lavasa Corporation Ltd, Adlabs Entertainment Ltd, Ortel Communications Ltd and Monte Carlo Fashions Ltd, while the remaining applications are under process, as their respective merchant bankers have to provide clarifications and information sought by the regulator.

Most of these firms are seeking investment through IPOs to expand their installed capacity and also to fund the working capital requirements.

Moreover, the companies that debuted on the stock markets in this financial year are trading above their issue price giving big returns to investors, also helped others to flock towards capital market and file for their public offers.