Nine companies get Sebi nod for IPO, fundraising may hit Rs 3,000 cr

Ujjivan Financial Services and Equitas Holding are among the nine firms

As many as nine firms, including Ujjivan Financial Services and Equitas Holding, have received markets regulator Sebi's approval in the first two months of 2016 to launch their IPOs to fund business expansion and meet working capital requirements.

New Delhi Centre for Sight, Thyrocare Technologies, Nihilent Techonologies, GVR Infra Projects, Mahanagar Gas, GNA Axles and Maini Precision Products too have got green signal from Sebi to float their respective initial share-sale programme, according to a data compiled.

Together, these companies are expected to raise at least Rs 3,315 crore, sources said.

Most of these companies plan to utilise IPO (initial public offering) proceeds for business expansion as well as working capital requirements.

Besides, the firms are taking the IPO route to achieve the benefits of listing the equity shares on the bourses.

Some of the firms believe the listing of the equity shares will enhance their brand name and provide liquidity to the existing shareholders.

All the nine firms, which had filed their draft papers with the Securities and Exchange Board of India (Sebi) between September-December 2015, received clearance from the regulator in January and February, information with Sebi showed.

Quantum AMC Director I V Subramaniam said: "IPO market will depend on the equity markets scenario. Besides, pricing will play a crucial role."

The IPO market is expected to see flurry of activity in 2016 as there are 20 companies that have already secured Sebi's approval to raise Rs 7,315 crore, with 11 still on wait-list to mop up Rs 5,445 crore, Prime Database Managing Director Pranav Haldea had said.

Besides, many more filings are expected in the near future, he had added.

Since the beginning of 2016, four companies -- HPL Electric & Power, Dilip Buildcon, Quess Corp and Advanced Enzyme Technologies -- have approached Sebi to float their IPOs, while three firms -- Quick Heal Technologies, TeamLease Services and Precision Camshafts -- have already hit the Dalal Street.

In 2015, there were as many as 20 main-board IPOs, which together pocketed about Rs 15,000 crore, making it the best period in the past few years in terms of fund raising through such plans.

In comparison, six IPOs had hit the market in 2014 and garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

Individually, Ujjivan's IPO comprises fresh issue of equity shares worth up to Rs 650 crore and an offer for sale of up to 2,49,68,332 scrips by the existing shareholders.

Last month, Ujjivan had raised Rs 300 crore from a clutch of investors in a pre-IPO placement. Since the pre-IPO placement is completed, the number of equity shares issued will be reduced from the fresh issue, subject to regulatory requirements, the company had said.

Equitas Holding's IPO consists of fresh issue of shares to the tune of Rs 600 crore and an equal amount by selling shares to existing shareholders, according to sources.