From InvIT to securities deposit, IPOs in 2017 to welcome new sectors
In the first six months of the current year, the fund raising through initial public offering of equity have already crossed Rs 10,000 crore.
By far 2017 has seen 11 new companies being listed on stock exchanges and five more companies will be listed soon.
In the first six months of the current year, the fund raising through initial public offering of equity have already crossed Rs 10,000 crore, according to a report by Business Standard which quote data provided by Prime Database.
According to the report, Rs 11,783 crore has been raised through IPOs during January-June by 11 companies including two new upcoming issues.
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Following IRB Infra, soon, India Grid Trust opened for IPO to get listed on bourses. Rs 2,250 crore initial public offer (IPO) which concluded on May 19, was subscribed 1.17 times. The set price band for the offer was set at Rs 98—Rs 100 per unit.
2. Stock Exchange:
The first IPO of the year, BSE Ltd got listed in January. The first by a domestic stock exchange had raised up to Rs 1243 crore from the IPO which was priced at Rs 805-806 per share.
With BSE getting listed, its rival National Stock Exchange has already applied for IPO in December last year. Recently, in an interview with a media house, NSE Chairman Ashok Chawla said that the exchange will complete its IPO by the year end.
3. Securities depository:
BSE Ltd subsidiary Central Depository Services Ltd (CDSL) this week has received overwhelming response during its three days long IPO.
The IPO was 170 times oversubscrived as per the NSE data. The IPO was expected to raise Rs 524 crore. The company had set a price band ranging between Rs 145 per share and Rs 149 per share.
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Before the IPO, the company raised about Rs 154.07 crore from 15 anchor investors.
4. Asset Management Company:
UTI Mutual Fund is likely to debut on stock exchanges soon. It will be the first domestic AMC to get listed.
Reportedly, the company has already started getting ready for its IPO road map with shareholders and they intend to file offer documents with Securitites and Exchange Board of India (Sebi) by this month.
According to a report by Business Standard, The UTI MF’s four existing sponsors — the LIC, the SBI, the Bank of Baroda, and the Punjab National Bank — also operate separate AMCs. Each owns an 18.3%stake in the UTI MF, while 26% is with the US-based T Rowe Price Group.
5. Insurance companies:
After ICICI Prudential IPO last year, at present, five state-owned and two private life and general insurance firm have announced their motive to enter the IPO market.
Reliance General Insurance (RGI), on June 12, 2017 said that its board approved the IPO. It expects the listing to complete by FY18.
ALSO READ: Insurance firms are all about IPOs this year
Finance Minister Arun Jaitley, in January 2017, approved listing of five state-owned general insurance companies -- New India Assurance, Oriental Insurance, National Insurance, United India Insurance and national reinsurer General Insurance Company.
The government plans to earn $1.63 billion (Rs 10,500 crore approx) worth of stakes in PSU general insurance companies.
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