September is likely to be the biggest month for initial public offerings
(IPOs) in seven years, with six deals cumulatively worth Rs 14,100 crore expected to hit the market. IPOs
of Dixon Technologies and Bharat Road Network, worth Rs 600 crore each, opened on Wednesday, while that of Capacite's Infra and Matrimony.com will hit the market
of ICICI Lombard and SBI Life Insurance
are expected will hit the market
later this month, investment bankers said. ICICI Lombard obtained Sebi nod for the IPO on Tuesday.
SBI Life is yet to obtain Sebi green light. If all the deals go through, this will be the second-best month for IPO mobilisation in the history of domestic markets
after October 2010, when Rs 17,673 crore was raised through six deals, which included Coal India’s Rs 15,000-crore offering. The supply of new paper, however, could weigh on the secondary market.
In the past five years, there have been only four months with four or more IPOs.
The average Sensex
return for these months is a negative 1.55 per cent. Overall, the fundraising
exercise is expected to be high in the remaining period of 2017, given the line-up of large IPOs
from the insurance