Fuelled by the mega public offer of Reliance Power, January 2008 ended up as a watershed month , with domestic companies mopping up over Rs 13,000 crore through Initial Public Offerings (IPOs). While the country's biggest IPO by Reliance Power significantly propped up the overall numbers, public issues of seven other companies including Future Capital Holdings, OnMobile Global Ltd and KNR Constructions are estimated to have raked in Rs 1,416 crore. If public offers of IRB Infrastructure Developers and Wockhardt Hospitals, both of which opened for subscription on January 31are added , the number surges to over Rs 2,925 crore. In comparison, the total mop-up in January 2007 stood at Rs 2,786 crore, and that of the full year at over Rs 34,213 crore, according to data compiled by Prime Database.
"This is surely amongst the highest-ever IPO mobilisation in a single month. The liquidity crunch seen in the secondary market was partly on account of an overwhelming response to the Reliance Power issue," Ernst & Young India's IPO Leader, Mr R. Balachander pointed out.
The Reliance Power IPO attracted over 5 million bids for over Rs 7,50,000 croreagainst the issue size of Rs 11,560 crore. During the month, Future Capital raised Rs 491 crore, while J Kumar Infraprojects and Cords Cable Industries garnered Rs 71 crore, and Rs 41 crore, respectively. Other IPOs included Shriram EPC and Bang Overseas.
Source : thehindubusinessline
