Motivated by consistently improving sentiments of the investors in the present stock market, firms are getting inclined towards the concept of raising more funds through IPOs and many firms have formed their own IPO plans in order to strike the market. Around 5 firms have already applied for their drafts for IPOs, with Sebi, the market regulator, in past few months, while many companies that also include Spencer’s satellite broadcast services wing of Videocon (BSE 0.17%) and the very popular satellite TV service provider, Tata Sky are now also looking forward to leverage the very popular IPO market.
Experts claim that sentiments all around have dramatically improved after numerous reform measures that have been announced by government and various market regulators in last few weeks, while an improvement in secondary market also looks like helping in bringing different firms to market. The companies that have already filed the draft documents since the month of September are Madhya Bharat Agro Products, Bharti Infratel, Calyx Chemicals & Pharmaceuticals, G B Tools & Forgings, and SMC Global Securities.
RP-Sanjiv Goenka (BSE -3.68%) Group CESC (BSE 2.18%) announced that Spencer’s will be listed by sometime in next year and Videocon D2H, satellite broadcast wing of Videocon and Tata Sky of Tata Group are also in the process of making it to capital market sometime in future. Most firms are planning to utilise the IPO proceeds mainly for expansion of their capacity along with fulfilling their capital requirements.
Chief of Sebi, U K Sinha, said few days ago that the organization has been sensing a new optimism about the market and overall economy. Sinha said, while admitting the fact that IPO has been quite sluggish all along this year, that a new interest has been sensed in last few weeks, which gave a sign that now people are getting optimistic and are likely to make more investments.
CEO and MD, Destimoney Securities, Sudip Bandhopadhyay said that the recent conditions in the market have dramatically turned favourable for firms that plan to come with IPOs mainly because of various measures taken by the government.
So, if the new companies do take strong initiatives to look at an IPO over the next few months, then the economy is certainly likely to observe a positive movement.