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Fund raising via IPO hit 5-year high

Thus far in 2015, including Coffee Day Enterprises a total 16 companies raised a cumulative Rs 7,496 crore from IPOs.

SI Reporter  |  Mumbai 

The fund raising through new issues have touched a five year high after Coffee Day Enterprises successfully mobilized over Rs 1,000 crore via an initial public offer (IPOs).

Thus far in 2015, including Coffee Day Enterprises a total 16 companies raised a cumulative Rs 7,496 crore from IPOs, the highest in past five years. It is nearly nine times higher as compared to previous calendar year 2014, when four companies had raised Rs 850 crore through IPOs in first nine-and-half months of the calendar.

Earlier, in the entire calendar year in 2010, total 64 companies had mobilized a record cumulative Rs 37,535 crore via new issues, according to PRIME, which compiles data on the primary capital

Year Number of Issue amount
issues (Rs. crore)
2011 37 5,966
2012 11 6,835
2013 3 1,284
2014 5 1,201
2015 16 7,496
(till October 16, 2015 )
Source : PRIME Database

The fund mobilization via public issues may cross Rs 10,000 crore marks in the current year as many more companies are lined-up to mobilize funds via primarily market.

Low-cost airline IndiGo's parent InterGlobe Aviation has fixed the price band for its initial share sale at Rs 700-765, through which it could raise up to Rs 3,268 crore.

According to Pranav Haldea, Managing Director of PRIME, even though a general positive sentiment has prevailed in the market, we are yet to see large IPOs hitting the market.

The pipeline though looks promising. At present, 19 companies planning to raise Rs 11,545 crore are holding Securities and Exchange Board of India (SEBI) approval and another 17 companies intending to raise Rs 6,795 crore have filed with SEBI and are awaiting approval, as per PRIME database.

Meanwhile, except Café Day Enterprises, the remaining 15 IPO’s that listed so far on the exchanges, nine are trading above their issue price, while the remaining six quoting below their IPO price.

VRL Logistics, Syngene International, PNC Infratech and Manpasand Beverages have appreciated more than 30% from their issue price. Adlabs Entertainment and UFO Moviez India are currently trading lower by 34% and 12% respectively against their IPO price.

Price in Rs
Name Issue LTP* %chg
VRL Logistics 205.00 387.90 89.22
Syngene International 250.00 369.40 47.76
PNC Infratech 378.00 514.00 35.98
Manpasand Beverages 320.00 422.40 32.00
Shree Pushkar Chem & Fert 65.00 83.00 27.69
Inox Wind 325.00 400.00 23.08
Ortel Communications 181.00 205.40 13.48
Prabhat Dairy 115.00 125.00 8.70
Navkar Corporation 155.00 162.00 4.52
Sadbhav Infra Proj 103.00 102.00 -0.97
Power Mech Projects 640.00 612.50 -4.30
Pennar Eng Build Sys 178.00 166.60 -6.40
MEP Infra Developers 63.00 56.30 -10.63
UFO Moviez India 625.00 548.25 -12.28
Adlabs Entertianment 180.00 119.40 -33.67
*LTP - last traded price on BSE at 12:35 pm.

First Published: Mon, October 19 2015. 12:39 IST