Funds Via IPOs Recorded As Lowest In Over A Decade
BENGALURU: There is a stable central government on work, and people of lot of hopes with the current government. Though things seem to change and take a positive turn in all functional areas. The corporate world is surging ahead with lot of investments pouring in and making the business world bloom and work effetively in the way of good work for India and its people.
As the year is coming to an end the passing year is supervised accounting all the profits, losses and other relevant events especially in business and financial world. The amount raised through IPOs in 2014 were recorded as the lowest in over a decade leaving the stable government with concern as how it went low though the benchmark indices hitting new highs during the year.
Initial Public Offerings are the first sale of stock by a private company to the public. IPOs are generally issued by smaller and newer companies looking out for capitals to expand themselves. IPO can be done by bigger companies as well to become publicly traded.
Though IPOs sounds easy and easier to do, it can be a risky investment as it is tough to predict the mood of the stocks during its initial stage of trading.
Five IPOs – of Wonderla Holidays, Snowman Logistics, Sharda Cropchem, Shemaroo Entertainment and Monte Carlo Fashions – have tapped the primary market so far this year. NCML Industries plans to hit the capital markets on December 29 with an offer for sale of six million equity shares through an IPO. The price band has been fixed at 100-120 per equity share of 10 each; as reported by Business Standard.
“It takes between four and six months for a company to complete the IPO process. Given that the markets have rallied since the formation of a stable government at the Centre in May, there are chances companies will now gear up to tap the IPO market. So, a lag effect could be seen in CY15,” said G.Chokkalingam, founder & managing director, Equinomics Research and Advisory.
According to PRIME Database, six companies had received the Securities and Exchange Board of India’s approval to collect around 2,605 crore through IPOs and follow-on-offers in 2014. Besides, 10 other companies had filed offer documents with the market regulator to raise 4,047 crore. But all of these companies are yet to launch their offerings.