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New Delhi: As many as five firms, including Mahanagar
Gas and Equitas Holding, have received markets regulator Sebi’s approval
in New Year to launch their initial public offerings (IPOs) to fund
business expansion and meet working capital requirements.
GVR
Infra Projects, GNA Axles and Maini Precision Products too have got
green signal from Sebi to float their respective initial share-sale
programme, according to the data.Together, these companies are expected to raise at least Rs 2,500 crore, sources said.
Most of these companies plan to utilise IPO proceeds for business expansion as well as working capital requirements. Besides, the firms are taking the IPO route to achieve the benefits of listing the equity shares on the bourses. Some of the firms believe the listing of the equity shares will enhance their brand name and provide liquidity to the existing shareholders. All the five firms, which had filed their draft papers with the Securities and Exchange Board of India (Sebi) between September-November, received clearance from the regulator in January, as per information available with Sebi.
According to Prime Database managing director Pranav Haldea, the IPO market is expected to see flurry of activity in 2016 as there are 20 companies that have secured Sebi’s approval to raise Rs 7,315 crore, with 11 still on wait-list to mop up Rs 5,445 crore.
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