IPO market to touch Rs 1000bn in 3 yrs

Capital market is set to flare up with public offers to the tune of Rs 1000 bn in three years, if government and SEBI undertakes reforms and improve infrastructure, according to analysts.

With booming equity market, mutual fund market may also see assets under management soaring to Rs 5000 bn from Rs 1450 bn now.

"IPO market will grow to over Rs 1000 bn in three years from a little over Rs 300 bn last year. That's where we see the market going. We also expect 12-15 per cent annual return from the equity market," says Uday Kotak, Managing Director of Kotak Mahindra Bank.

Prithvi Haldea of Prime Database said public offerings worth Rs 630 bn are in the pipeline but it is difficult to say how much will actually materialise.

"If everything goes well in the market, public offers worth Rs 400 bn is expected this year," he said.

A host of mega IPO and public offers are in the offing from private companies like Tata Sons, Reliance Infocomm, Idea, Hutch, BPL Communications, Tata Teleservices, Jet Airways and Air Deccan.

Major Central and state PSUs like BHEL, Power Finance Corporation, PowerGrid, ONGC, NHPC, Haldia Petrochemicals, Gujarat State Energy Generation, Gujarat State Petroleum, NFL, Neyveli Lignite and Shipping Corporation of India are also planning to tap the markets.

As many as 11 public sector banks -- PNB, Bank of Baroda, Oriental Bank of Commerce, Allahabad Bank, Dena Bank, Syndicate Bank, HDFC Bank, J&K Bank, Centurion Bank and Yes Bank -- are also in the process of tapping the market.