Infrastructure space lights up D-street with 30 IPOs

NEW DELHI: Sensing significant growth opportunity in the poor infrastructure network in the country, as many as 30 infrastructure-related companies are aiming to raise funds from the capital markets in the coming weeks.

An analysis of the public issues slated to hit the market in the near future shows a marked shift in investors' focus toward sectors like infrastructure and real estate that have emerged as potential growth avenues.

Analysts believe the momentum in infrastructure space is gaining speed with sector-related firms planning huge expansion and new, large-scale projects.

A majority of public issues on the horizon has exposure to infrastructure space, a market observer said, adding this is reminiscent of a similar trend a few years ago when many companies planning to hit the market were from the IT sector.

The upcoming issues with an infrastructure or real estate edge include realty giant DLF, Omaxe, Housing Development and Infrastructure ltd, NHPC, Power Grid Corporation of India ltd, Afcons infrastructure, Titagarh wagons as well as follow-on offerings of Bharat Earth Movers Ltd and Mankasia Ltd.

With the articipation of private entities increasing in the large scale infrastructure projects, the sector has become lucrative for investors, market tracking firm primedatabase's CEO Prithvi Haldea said.

Among investor segments, mutual funds (MF) are also upbeat on the prospects of infrastructure-related public issues. There are already a number of infrastructure-focused MF schemes in the market, while a number of fund houses such as SBI are launching new schemes.