Dalal Street to see IPOs worth Rs 14,000 crore: Here are 10 points

PANORAMA

Dalal Street to see IPOs worth Rs 14,000 crore: Here are 10 points

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At least 7 companies are expected to hit the capital market this week to raise over Rs 14,000 crore

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The initial public offer (IPO) lane is getting busy as at least seven companies are expected to hit the capital market this week and are likely to raise over an estimated Rs 14,000 crore.

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Some of the biggies on the list are  Lodha Developers, HDFC Mutual Fund, TCNS Clothing, Nekkanti Sea Foods, Flemingo Travel Retail, Patel Infrastructure and Genius Consultants.

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All these companies are rolling out IPOs to raise funds for business expansion, repayment of loans and to finance working capital requirements. Together the companies are aiming to raise more than Rs 14,000 crore.

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TCNS Clothing is the first on the list. The company sells its products under W, Aurelia and Wishful brands and is expected to launch its Rs 1,125-crore initial share-sale this week.

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Market sources said realty major Lodha Developers plans to raise an estimated Rs 5,500 crore through its IPO. This would include fresh shares worth Rs 3,750 crore besides an offer for sale of 1.8 crore shares by the promoters.As per SEBI, it also aims to raise about Rs 750 crore out of the proposed issue through a pre-IPO placement of 95 lakh fresh shares.

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Leading duty-free and travel retail operator Flemingo will issue fresh shares worth Rs 2,423 crore besides an offer for sale of 11,29,500 shares by one of its subsidiary Flemingo Duty Free Shop Mumbai Pvt Ltd. Sources said that the firm will raise Rs 2,600 crore via IPO.

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The IPO of Nekkanti Sea Foods, which is worth Rs 750-crore, comprises fresh issuance of shares worth Rs 250 crore. Besides, an offer for sale of up to 80 lakh equity shares by the existing shareholders.

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The Patel Infra IPO will see sale of equity shares worth Rs 400 crore. Genius Consultants' IPO comprises fresh equity worth Rs 170 crore. One million shares of promoter Rajendra Prasad Yadav will also be put on the block.

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According to experts, the proactive regulatory environment along with uplifted investor sentiment, has helped the overall IPO market. By taking the IPO route, these companies will also achieve the benefits of listing the equity shares on the bourses, which would enhance their brand name.

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Between January and June 2018, 18 companies have already raised Rs 23,670 crore through their respective IPOs, which is higher than Rs 12,000 crore garnered by 13 issuers in the first six months of 2017.