IPO plans worth Rs 35,000 cr may be hit by market crash: Study
Over 20 companies, which had already received approval from market regulator SEBI, have deferred their initial public offers. How to pick dividend stocks
By PTI |
NEW DELHI: The stock market meltdown may derail plans of as many as 64 companies, including Reliance Infratel, Oil India and NHPC, to enter the capital markets for collectively raising about Rs 35,000 crore, a study said.
"Plans of 44 IPOs, collectively planning to raise Rs 31,000 crore, which are presently awaiting SEBI approval, may be hit until the market recovers. These include IPOs of Reliance Infratel, Mahindra Holidays, Future Ventures, Jaiprakash Power Ventures, JSW Energy, NHPC and Oil India," ASSOCHAM Co-Chairman of the Capital Markets Committee Prithvi Haldea said.
About 20 companies, including Acme Tele Power, Pride Hotels and Xenitis Infotech, which had already received approval from market regulator SEBI, have deferred their initial public offers and are now waiting for a conducive time to enter the market, according to the study jointly conducted by ASSOCHAM and Prime Database.
However, some of these 64 firms may still go ahead with their IPO plans, though at reduced valuations, even in the present market conditions, Haldea added.
"Plans of 44 IPOs, collectively planning to raise Rs 31,000 crore, which are presently awaiting SEBI approval, may be hit until the market recovers. These include IPOs of Reliance Infratel, Mahindra Holidays, Future Ventures, Jaiprakash Power Ventures, JSW Energy, NHPC and Oil India," ASSOCHAM Co-Chairman of the Capital Markets Committee Prithvi Haldea said.
About 20 companies, including Acme Tele Power, Pride Hotels and Xenitis Infotech, which had already received approval from market regulator SEBI, have deferred their initial public offers and are now waiting for a conducive time to enter the market, according to the study jointly conducted by ASSOCHAM and Prime Database.
However, some of these 64 firms may still go ahead with their IPO plans, though at reduced valuations, even in the present market conditions, Haldea added.
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At the beginning of the year, ASSOCHAM and Prime Database had estimated that companies could raise nearly Rs 60,000 crore through IPOs in 2008, subject to stable secondary market conditions.
The first three months of the year have seen just 17 IPOs aggregating to Rs 14,900 crore and the amount might have been larger but for the crash in the secondary market since later part of January, it said.
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