Slew of IPOs likely to hit Dalal Street in Sept

People planning to invest money in primary market would have a number of choices to park their savings this month, as about a dozen of companies are expected to bring out their IPOs in September.

As many as 11 small to medium scale companies, including tutorial service provider Career Point and entertainment and media firm Eros International, are preparing to launch their initial public offerings this month, merchant banking sources told PTI.

The companies, which are planning to come out with their IPOs include Indosolar, Commercial Engineers, VA Tech Wabag, Ashoka Buildcon, Electrosteel, You Broadband and BS Transcom.

 "All these companies are trying to hit the market before September because otherwise they will have to re-file the June quarter financial results with the capital market regulator Sebi. Till September, they can go with March quarter financial results," said a person involved in a number of these IPOs.

However, independently, these firms could not be reached for comments on their expected time frame to hit market.

"The huge response received by several issues in recent times is also an encouraging factor for these companies to cash in the opportunity," said a merchant banker.

 Recently, the public issues of a number of entities including SKS Microfinance, Prakash Steelage Ltd and Gujarat Pipavav Port Ltd got huge response from investors and were oversubscribed. Listing of these firms was also stellar.

The follow-on public offer of the state-run Engineers India Ltd has also received a robust demand from investors.

Corporate India raised over Rs 47,800 crore through the public offers during the fiscal 2009-2010, a period during which the stock market benchmark Sensex gave a handsome return of over 80 per cent.

 Apart from some big initial public offers 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.

 According to an analysis, about 44 companies -- including PSUs -- raised Rs 47,867 crore during the April 2009 to March 31, 2010 period.