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Cafe Coffee Day, IndiGo to beef up IPO market to 4-year record
With big brands like Cafe Coffee Day and IndiGo lining up their public offers, the IPO market is set for a four-year record performance this year as close to Rs 6,600 crore has already been raised and plans are afoot for garnering another Rs 20,000 crore.
New Delhi: With big brands like Cafe Coffee Day and IndiGo lining up their public offers, the IPO market is set for a four-year record performance this year as close to Rs 6,600 crore has already been raised and plans are afoot for garnering another Rs 20,000 crore.
Coffee Day Enterprises, which runs Cafe Coffee Day (CCD) chain of restaurants, will hit the capital markets this week on October 14 to garner Rs 1,150 crore -- which would take the total mop-up in 2015 so far to close to 7,800 crore.
This itself would be the highest amount raised from IPOs in four years.
Additionally, low-cost carrier Indigo's parent company Interglobe Aviation is slated to hit the IPO market later this month to raise about Rs 2,500 crore.
Besides, many more firms are expected to take the plunge into the primary market during the festive season starting from Dussehra to Diwali. Those in pipeline include Infibeam, the first e-commerce firm in India to tap IPO market.
Apart from CCD and IndiGo, at least 15 firms have got the go-ahead from regulator Sebi to launch their respective IPOs, while another 17 companies are awaiting green signal from the markets regulator.
These 34 companies are together estimated to raise more than Rs 20,000 crore.
"Festive season is approaching, so I expect many companies that are holding their IPO plans and companies that have not hit the capital market despite getting Sebi's approval would definitely plan to go ahead with their public issues," CNI Research Head Kishor Ostwal said.
The companies are tapping primary markets to raise funds to meet their business expansion plans, to support capital expenditure needs. In addition, the firms are launching IPOs, to give institutional investors like private equity funds an opportunity to exit.
So far this year, 15 companies have launched their IPOs and have collectively raised over Rs 6,600 crore. This year is set to become the best period in four years in terms of fund raising through initial share-sale programmes.
In comparison, six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.
A total of Rs 6,938 crore and Rs 5,966 crore had been mopped-up in 2012 and 2011 respectively. The highest-ever mobilisation through IPOs in a single year was in 2010 at Rs 37,535 crore.
Since the beginning of 2015, as many as 37 companies have filed their draft documents with Sebi to float their IPOs. In the same period, the markets watchdog has given approval to 28 firms to launch their initial share sale plans, some of which were pending from the previous year.
Among the forthcoming IPOs, L&T Infotech, the IT unit of engineering and construction giant L&T, is eyeing Rs 2,500 crore, Alkem Laboratories is aiming to garner Rs 1,500-3,500 crore, and Matrimony.Com is looking to raise an estimated Rs 600-700 crore.
Others in the queue include Team Lease Services, VLCC Health Care, Dr Lal Pathlabs, Matrix Cellular, Infibeam Incorporation, Parag Milk Foods, Narayana Hrudayalaya, RBL Bank and Quickheal Technologies.