The secendory markets of India have started calender year 2012 with a positive tone. Despite such positive momentum in secondary market, it couldn’t reflect on to the IPO markets. Already 4 IPOs called off in very first month of the current year 2012. SEBI gives permission to a company to float its initial public offering (IPO) in one year of time counting from the permission date. All the 4 companies who called off their IPOs was having SEBI approval but they decides not to come up with their IPOs.
The 4 companies those have backed their steps to float IPOs are Micromax Mobiles, Pride Hotels, Betul Oil and Tara Jewels. The total amount of money supposed to be raised by these companies was about Rs 701 Crores. Individual companies IPOs amount was as follows :-
1. Micromax Mobiles (approx IPO amount of Rs 426 Crores)
2. Pride Hotels (approx IPO amount of Rs 125 Crores)
3. Betul Oil (approx IPO amount of Rs 100 Crores)
4. Tara Jewels (approx IPO amount of Rs 50 Crores)
The passing by year 2011 has also faced a similar situation in last some months and about 29 IPOs were called off. The total amount supposed to be raised by those 29 companies was about Rs 32,398 Crores.
Further, there are atleast 10 other companies who have valid SEBI approval in hand and are left with just 2 months in their validity period of one year from the date of SEBI approval. Such companies include Joyalukkas India, Lokmat Media, Aravali Infrapower, VRL Logistics, Embassy Property Developers, etc. The total amount that is expected to be raised by these 10 companies is about Rs 4,210 Crores.
The government too is not disclosing its disinvestment program this year and in a mood of “wait-and-watch”. Due to this situation primary market is not getting the kind of momentum that is expected to happen.
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