SMEs to rework on pricing, timing of IPOs
Small and medium companies looking to raise money through IPOs have been forced to rework pricing and timing of the issue due to the volatility in the stock markets and heavy corrections.
By PTI |
MUMBAI: Small and medium companies looking to raise money through IPOs have been forced to rework pricing and timing of the issue due to the volatility in the stock markets and heavy corrections.
Companies are reworking IPO pricing following the market correction, says market watchers.
Recent downturn in the market has restrained companies that are not fundamentally sound from announcing their IPOs and repositioning issues by 3-6 months, they said.
IPOs of Bluplast Industries and Vigneshwara Exports were withdrawn after poor response from investors. In fact, Deccan Aviation and Vigneshwara Exports were forced to lower their price band and extend closing dates.
Deccan Aviation price was scaled down from Rs 150-175 to Rs 146-175 whereas in case of Vigneshwara price band was lowered from Rs 121-140 to Rs 110-124.
With stability returning in the markets, a wait-and-watch strategy is being adopted by many companies.
With derivatives trading expiry for the Future and Options (F&O) markets on June 29, the market is expected to stabilise and IPO market may revive after the second week of July.
Meanwhile, Mahindra Tech on Wednesday announced filing of draft red herring prospectus with Sebi for the IPO but didn't announce any timeline.
However, IPOs of companies like MCX, GMR and DLF are behind schedule by only 10 to 15 days.
Companies are reworking IPO pricing following the market correction, says market watchers.
Recent downturn in the market has restrained companies that are not fundamentally sound from announcing their IPOs and repositioning issues by 3-6 months, they said.
IPOs of Bluplast Industries and Vigneshwara Exports were withdrawn after poor response from investors. In fact, Deccan Aviation and Vigneshwara Exports were forced to lower their price band and extend closing dates.
Deccan Aviation price was scaled down from Rs 150-175 to Rs 146-175 whereas in case of Vigneshwara price band was lowered from Rs 121-140 to Rs 110-124.
With stability returning in the markets, a wait-and-watch strategy is being adopted by many companies.
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With derivatives trading expiry for the Future and Options (F&O) markets on June 29, the market is expected to stabilise and IPO market may revive after the second week of July.
Meanwhile, Mahindra Tech on Wednesday announced filing of draft red herring prospectus with Sebi for the IPO but didn't announce any timeline.
However, IPOs of companies like MCX, GMR and DLF are behind schedule by only 10 to 15 days.
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