Street gears up for mega floats

As many as 88 companies to raise Rs 22,000 crore via IPOs in next few months.

With Sensex entering a bullish phase, corporate majors such as Cairn Energy, Fortis Healthcare and PFC are bracing a for a debut on the bourses.

Analysts expect corporates to mop up nearly Rs 22,000 crore in next few months. With Sensex recovering nearly 2,500 points from the May-June meltdown to around 13,000 level, around 88 companies, those which have already filed their offer documents with the Securities and Exchange of India (Sebi), are in high spirits.

Of this, 13 issues have already got Sebi approval and aim to collect around Rs 2,730 crore, while 75 companies (Rs 19,000 crore ) have filed their offer documents with the regulator, according to Prime Database.

However the market saw a low-key half-year performance, as the amount raised through public issues stood below the corresponding period's figures, even the number of issues were nearly same.

The first-half ended with a mobilisation of Rs.7,581 crore with 36 issues, almost similar to the preceding year's 35 issues worth Rs 7,622 crore, the data revealed. It also said that around 400 public offers are in active pipeline, which collectively aim to raise Rs 1,50,000 crore.

"If even some of these make it to the market in the near future, it would not only help channelise household savings into economy but also give the long-awaited breadth to the secondary market," Prime Database said.

As per Prithvi Haldea of Prime Database, if the government uses market route to raise money, it could enlarge the investor base and the capital market. State-owned companies can even follow this route to collect funds for their expansion.