At least 11 firms have called-off their Initial Public Offer (IPO) plans since the beginning of 2012, even as the country's largest commodity exchange MCX today made a stellar debut in the stock market after a highly-successful IPO last month, a report has said.
"MCX IPO may be the lone shining star in the IPO market. The year 2012 has already seen call-off of 11 IPOs. The probable amount that these IPOs were planning to raise was to an aggregate of Rs 4,771 crore," brokerage firm SMC Global Securities said in a report.
This is in addition to 29 companies having shelved their IPO plans last year. The total amount these companies were planning to raise was about Rs 32,400 crore.
Since January, 2011, about IPOs have been called off till date.
"The IPO market is smiling after MCX listing. However, it needs to be seen whether that smile will get converted into jubilation," Jagannadham Thunuguntla Head of Research SMC Global said.
MCX today listed with a 34% premium over its IPO price and finally settled 26% higher at Rs 1,297.05 a share on the BSE.
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The stock market has largely been on an uptrend in 2012 so far, although some volatility has been seen in the past few weeks.
Even after getting approval from market regulator Sebi, these companies could not launch their IPOs within the valid period of one year from the date of approval.
"This surely will impact Indian corporates ability in fund raising to finance their expansion projects resulting in slow down in capacity building and job creation," SMC said.
The 11 companies who have called-off their IPOs during 2012 include Micromax, Embassy Property and VRL Logistics.