IPO mop-up crosses Rs 10,000 cr in 2006

Fifty-one companies collectively mobilised Rs 10,036 crore from the primary market in the first eight-and-a-half months of 2006.

This is 32 per cent higher than Rs 7,729 crore raised in the corresponding period last year. In fact, this is also higher than Rs 9,990 crore mobilised by 53 companies in entire 2005.

According to PRIME Database, which tracks capital floats, more public issues are likely to hit the market during the coming months.

Already, 11 companies have received the Securities and Exchange Board of India (Sebi) approval to raise Rs 2,300 crore from the primarily market, while 52 other firms filed offer documents and are waiting for the Sebi approval to raise Rs 6,800 crore from the market.

The list of companies that received the Sebi approval for initial public offers (IPOs) includes Power Finance Corporation (Rs 1,500 crore), MSPL (Rs 153 crore), Hanung Toys and Textiles, Accel Frontline and Technocraft Industries (Rs 100 crore each) and Minar International (Rs 85 crore).

Promoters of small and medium unlisted companies are planning to raise money through IPOs after the revival of equity markets. In August and September, ten companies raised Rs 1,000 crore from the primary market. Tech Mahindra, Voltamp Transformers, Deep Industries and KEW Industries collectively raised Rs 695 crore through maiden floats last month.

The markets meltdown in June had a negative impact on the primary market sentiment.

GMR Infrastructure was the lone company that had managed to raise Rs 789 crore after the 30 per cent fall in major indices from their historic highs.

Three companies "" Bluplast Industries (Rs 35.20 crore), Shirdi Industries (Rs 43.55 crore) and Vigneshwara Exports (Rs 52.36 crore) "" withdrew their IPOs and DLF Universal, which had planned a mega Rs 12,000 crore IPO, has postponed it.