While top international investment banks including Citi, Deutsche Bank, JPMorgan and Merrill Lynch have either been mandated for big IPOs or are in talks in that regard, local names such as Enam, JM Financial, Kotak, SSKI and SBI Capital are not far behind.
Investment bankers have reportedly set their eyes on HDFC Standard Life Insurance (HDFC Life), a subsidiary of Housing Development and Finance Corporation.
HDFC Life, in which the parent has a 76 per cent stake, could be the first domestic insurance company to be listed. It is valued at a whopping Rs 15,000 crore to Rs 20,000 crore ($3 billion-5 billion) and aims to raise Rs 1,500 crore to Rs 2,000 crore by diluting 10 per cent.
While JP Morgan has been pushing hard for the mandate, sources in the know reckon that the HDFC Life deal was likely to go JM Financial's way, given HDFC's proximity to the chairman Nimesh Kampani.
Valuation challenges and right pricing would be the major concerns for bankers after the recent market crash, according to market analysts.
Investment bankers were out of work for a couple of months as the primary market was in a terrible shape. The investor sentiment reached its nadir after the withdrawal of public issues by Emaar MGF and Wockhardt.
Banks had started feeling pinch as deals in foreign currency bonds also dried up following the global credit crunch. A top international bank had asked its staff to limit the expenses on business lunches and other leisure activities.
"The situation does not seem to be so bad now as corporate houses worldwide are showing an interest in raising funds through primary markets and merger and acquisition activity is also picking up," said an analyst.
The Hong Kong IPO of Maoye International offered 863 million shares at HK$2.90-$3.80 apiece.
Thanks to the improved market conditions, Goldman Sachs, HSBC, JPMorgan and UBS did not have to price the deal at rock-bottom prices, unlike recent offerings. Citi, Goldman Sachs and UBS also launched the Hong Kong IPO of E Land Fashion China, a Chinese subsidiary of the Korean fashion retailer E-Land Group.
Back home, Gautam Adani filed the draft prospectus for yet another mega IPO last week.
Adani has roped in Merrill Lynch as the sole global co-ordinator for the Rs 5,000 crore IPO of Adani Power. Enam, JM Financial, ICICI Securities, Kotak Mahindra, SSKI and SBI Capital are the book runners.
GMR Energy has reportedly mandated JM, Financial, Enam, ICICI Securities and Kotak Mahindra for its IPO. The company will dilute a stake of about 15 per cent. GMR Energy has three power projects and is executing two coal fired power plants.
Dish TV India's board has approved a rights issue of up to Rs 1,200 crore. The board of Educational software services company Educomp has given the nod to raise up to $500 million through an offshore issue.
State-run companies such as Bharat Oman Refineries and National Hydroelectric Power are also planning to tap the primary market.
