2016 has kicked off with five more companies including Mahanagar Gas Ltd, Equitas Holding, GVR Infra Projects, GNA Axles and Maini Precision Products receiving market regulator Sebi’s approval for their initial public offering (IPO), PTI reported.
These are the companies which filed their draft red herring prospectus (DRHP) in September-November quarter 2015 and are expected to raise at least Rs 2,500 crore ($369.8 million), an ET report said, citing sources.
Most of them plan to use the money for expansion and working capital requirements.
Microfinance firm Equitas Holdings IPO will comprise fresh issue of Rs 600 crore as well as the same amount of shares to sell by existing investors. GVR Infra will sell fresh shares worth Rs 400 crore besides selling 43.22 lakh shares by its existing investor IDFC PE.
Mahanagar Gas’ IPO includes up to 12.34 million shares sale by GAIL and an equal volume by UK’s British Gas Asia Pacific Holdings.
GNA Axels and Maini Precision Products’ include 63 lakh shares and 30.3 lakh shares respectively for sale.
Like in 2015, the IPO market is expected to see a huge rush this year also. There are 20 companies that have secured SEBI’s approval to raise Rs 7,315 crore, with 11 still on the wait-list to mop up Rs 5,445 crore, according to Pranav Haldea, MD of Pime Database.
Last year, around $2 billion was raised by Indian companies through the IPO route against $226 million in 2014, indicating a seven-fold growth.
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