Markets volatility impacts IPOs severely

The volatile market has impacted the IPO market severely. As many as 25 companies have called off their Initial Public Offers (IPO) so far this calendar year. The amount that they were planning to raise was about Rs 31,000 crores, as per data collated by brokerage firm SMC Global Securities in its latest report.

All these 25 companies had valid SEBI approval in hand for their IPOs. Even then, they couldn’t open their IPOs within the validity period of one year from the date of SEBI approval, the report further stated.

Companies which could not launch their IPOs are primarily from the real estate and power sectors. The list of real estate companies that called off their IPOs include Lodha Developers, Ambiance Real Estate, Kumar Urban Developers, Neptune Developers among others. The power companies include Sterlite Energy, Jindal Power and Avantha Power. Besides, other major companies are Reliance Infratel, Glenmark Generics and Gujarat State Petro Corp.