The Hindu Business Line : India Inc raises over Rs 45,000 cr in IPOs, follow-ons in 2007

New Delhi, Dec. 22 Marking the highest mobilisation in a single year, Indian companies are estimated to have raised Rs 45,062 crore through initial public offerings (IPOs) and follow-on public offerings (FPOs) during 2007, almost 85 per cent more than last year.

While over 100 IPOs grossed close to Rs 34,134 crore this year, six FPOs during the year raked-in another Rs 10,927 crore.

“This has been a landmark year for public issues, with the highest-ever mobilisation in a single year and, interestingly, it was dominated by real estate sector. About 45 per cent of the total IPO mobilisation came from the realty sector, this year. As many as 12 companies from the real estate domain got listed and 11 of those witnessed huge premiums after listing. This shows markets’ appetite for good real estate firms,” said Mr Prithvi Haldea, Managing Director, PRIME, a database dedicated to the primary capital market.

Mr Haldea said he expected to see more real estate companies hitting the market in 2008.

“Next year, the pipeline for the power sector companies will also be strong as firms like REC will tap the market,” he said. Interestingly, the average size of the IPOs in 2007 rose to Rs 350 crore against about Rs 260 crore in the previous year.

“Given the strong public issue pipeline ahead, we can expect to see mobilisation of Rs 75,000-80,000 crore next year,” he added.

It may be recalled that fuelled by DLF’s mega public issue of Rs 9,187.5 crore, the total IPO mop-up in June had exceeded all expectations garnering close to Rs 11,906 crore, while the FPOs had garnered another Rs 10,570 crore.

The IPO realisations in January stood at about Rs 2,786 crore, in February at Rs 4,503 crore, and in March at about Rs 460 crore.

India Inc raised Rs 682.5 crore in April and Rs 494 crore in the following month.

The realisation in July had been pegged at Rs 3,603 crore, in August Rs 666.57 crore, in September Rs 3891 crore. October and November grossed Rs 268.85 crore and Rs 3393.20 crore, respectively.

So far, December has seen six IPOs garnering Rs 1,478 crore, besides two FPOs which add up to Rs 251 crore.

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