Future of IPOs in India

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A Brief Note on Future of IPOs in India

The IPO industry in India has received a major boost in the current year especially with the emergence of Reliance Power IPO on 15th January 2008. Apart from Reliance Power, another IPO which brought in major capital is Kishore Biyani-led Future Group's financial services arm. This IPO has been a recipient of 17.36 crores equity shares as bidding as compared to 6,422,000 equity shares on offer. The public offerings of the IPO of Kishore Biyani-led Future Group's financial services arm are estimated to raise around ` 490 crores future capital.

The price range fixed for the Equity shares of this IPO varies between ` 700 to ` 765. The subscription for the issue of this IPO was opened from 11th January 2008 to 16th January 2008.

Upcoming IPOs in India for 2008-

  • IPO of Air India- to be launched in the second half of 2008.
  • IPO of Gammon Infrastructure Projects Limited - subscription is supposed to open on 10th March 2008 and close on 13th March 2008. Price band set for per equity share is between `27 to `30.
  • IPO of Sita Shree Food Products Ltd. - subscription is supposed to open on10th March 2008 and close on 14th March 2008. Price band for each equity share will vary between `90 to `105.
  • IPO of V-Guard Industries Limited- Will be launched in the year 2008 and the cost per share will be between `80 to `85
  • IPO of National Hydro- Electric Power Corporation (NHPC) - it will be launched by March 2008.
  • IPO of Bombay Stock Exchange- It will be a `500 crores IPO and will be launched by March 2008. It will be a 10% expansion of the BSE equity.

Recent Updates of the IPOs in India-

Future of IPOs in India is quite bright as the Future Capital Holdings in India are expected to raise up to USD 124 million by the end of 2008. Future Capital, the financial services arm of the diversified Future Group is expected to divest around 10.16 percent of its capital which accounts for around 6.4 million shares in the IPO market. In the year 2007, the IPO market in India has been estimated to raise USD 8.2 billion from 88 IPOs as compared to USD 4.7 billion in the previous year. It contributed largely in the growth of stock market which rose by 47 percent. Assuming a major hike in the Indian IPOs, the government has confirmed the opening of the Oil India IPO by March 2008. The IPO of Oil India Limited has been reported to raise `1500 crores and will hit the capital market in March 2008.