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There is a correction in this article that can be seen at the end of this page.
The domestic initial public offering (IPO) market could see heightened activity in March, with at least four companies planning to launch such offers. Cable operator Ortel Communications and amusement park company Adlabs Imagica will be the first to hit the market.
Odisha-based Ortel, who is planning to raise up to Rs 270 crore, will launch an IPO on March 3, while Adlabs Imagica’s IPO, aimed at raising about Rs 470 crore, will open on March 10. PNC Infratech, ACB (India) and Power Mech are expected to hit the market later next month, say investment bankers.
“The IPO pipeline is looking very strong. We will see quite a few issues in the next couple of months,” said V Jayasankar, senior executive director and head of equity capital markets, Kotak Investment Banking. Jayasankar is handling the Ortel, Adlabs and Power Mech issues.
Inox Wind, Uniparts India and VRL Logistics are some other companies that have secured regulatory go-ahead to launch IPOs.
“The Budget will be an important event for companies in the infrastructure and power space. Before coming to the market, most issuers that have secured approvals are hoping for favourable announcements from the finance minister,” said an investment banker, on condition of anonymity.
Sadbhav Infrastructure Project, CL Educate, and Manpasand Beverages are awaiting nods from the Securities and Exchange Board of India to launch IPOs.
Bankers say bankers, Sadbhav Infrastructure and Inox Wind are relatively large offerings, seeking to raise about Rs 1,000 crore each, while most other issues are in the sub-Rs 500 crore category.
Investment bankers say this year could see a revival in the IPO market, which has been in the doldrums in the past two years. Last year, only five companies launched IPOs, raising a total of Rs 1,200 crore, the lowest in more than a decade.
Correction: Power Mech has clarified that the size of its proposed IPO mentioned in the table is incorrect. The company is proposing to sell around 4.27 million shares, the price of which will be determined through a book-building process.
