Indian IPO Market Includes 7 Listings, 23 Approvals in H1, 2015

In the first six months of this year, seven new companies have been listed on two of India’s stock exchanges – NSE and BSE. These companies raised a total of $543 million or Rs.3,445 crore. The scenario has surely improved from just five listings in total in 2014.

In the first-half of the year, Securities and Exchange Board of India (SEBI) approved as many as 23 IPO applications, which is the highest number in the same time frame in the last 4 years. SEBI had approved 20 applications during the first six months of 2012 but the figure dropped to just 10 in H1 2013 and it dipped further to 5 in first-half of 2014.

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Companies like Ortel Communications, Adlabs Entertainment, Inox Wind, and MEP Infrastructure Developers which secured clearances in 2014, brought their IPOs in the H1 2015. These companies were joined by VRL Logistics, UFO Moviez, and PNC Infratech which received approvals recently. In total, these companies mobilized nearly Rs.3,450 crore from the primary market.

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As per IPO central analysis, investors lost money in Ortel Communications, Adlabs Entertainment, MEP Infrastructure, and UFO Moviez.

By the end of June 2015, India’s IPO pipeline had swelled to 19 companies with SEBI approvals in hand (it has since increased to 21) and these firms plan to raise at least Rs.7,470 crore through public issues in the coming months. The biggest public offer is likely to be of AGS Transact Technologies at Rs.1,350 crore and Rashtriya Ispat which is believed to have shelved its listing plans.

India’s growing IPO Pipeline
Company Issue Size (in INR crore) Number of Shares
Lavasa Corporation 750
Rashtriya Ispat Nigam 488,984,620
Shree Pushkar Chemicals and Fertilizers 75
ACB (India) Limited 415* 30,940,000
Uniparts India 250* 13,040,000
Power Mech Projects 300* 4,269,000
Sadbhav Infrastructure Project 425
SMC Global Securities 125
Precision Camshafts 250
Navkar Corporation 600
SSIPL Retails 95
AGS Transact Technologies 1,350
Dilip Buildcon 750
Shree Shubham Logistics 210
Amar Ujala Publications 60
Prabhat Dairy 275
Syngene International 400
S H Kelkar and Company 250
Catholic Syrian Bank 400
Numero Uno 65
Sadbhav Infrastructure 425
Total 7470
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Source: DRHPs filed with SEBI, * indicates IPO Central estimates 

Other players like Indian airline company IndiGo, customer support software company and Zendesk competitor Freshdesk, and eCommerce player Infibeam are also waiting to tap the market and have filed IPO papers with SEBI.

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