With the market showing positive momentum and still remains hot among the foreign investors. The Market is above 20,000 levels the figure never seen after the recession.
Given the progress Indian market has seen, many companies are planning to float an IPO to get maximum out of it.
It is expected that in this week alone around 11 new IPO issue will be launched. If the estimates of trade analyst are to be believed than $15 billion in new equity could hit the market provided the opportunity does not shut by the year end.
The Finance ministry plans to raise $8.6 billion through stake sales in the fiscal year that ends next March.
Director of India global markets solutions at Credit Suisse, Sumit Jalan, said “A lot of smaller deals are getting done now because it will be harder to complete them after a couple of months as bigger transactions hit the market.”
He further said, “IPO deals which were in the pipeline for some time are being realised now due to favourable market conditions.”
Jalan feels that around 20 to 25 IPOs will open over the next three to four months if markets remain strong.
As per the data released by the Thomson Reuter, Indian Inc. have raised more than $15 billion so far this year from share sales, third in Asia after China’s $103 billion worth of issuances and Hong Kong”s $18 billion.
Going by the news it seems that the market will be flooded by the IPOs in till the end of fiscal year.
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