Will these Offerings be still Big Ticket ?

During the Euphoria on Dalal Street early this year, me too for a BIG IPO / Follow on Public Offering, Rights Issue, AIM Listing was the mantra in corporate boardrooms. Digging into our database we have found several companies have SEBI approval for big fund raising. here is the except,

  • Adani Power – Rs 5,630 cr
  • Reliance Telecom Infra – Rs 4000 cr
  • Future Ventures [Retail] – Rs 2,600 cr
  • National Hydro Electric Power – Rs 1,600 cr
  • Oil India – Rs 1,400 cr
  • Pipav Shipyard – Rs 700 cr
  • Ramky Infrastructure – Rs 400 cr

The list goes on. Reliance Power took the lead in the debacle of IPOs market followed by the failure of Wockhardt and Emmar MGF IPOs, it was a clear sign of corporate greed and investors shying away from unreasonable premium the managements commanded on their poorly implemented businesses.

With global appetite drying for Equities, we do not think promoters will be able to raise the funds through these IPOs which are commanding heavy premium.