The fall during April 12-13 has wiped off 426 points from the 30-share Bombay Stock Exchange and it was at 11,237.23 at the close of trading last Thursday.
Due to bullish secondary market, some IPOs were aggressively priced last year which disappointed investors. The disappointment of investors and the fall in sensex will make IPO pricing more reasonable this year.
The strong pipeline this year includes IPOs from public sector companies like:
Air India/Indian Airlines (Rs 4,000-5,000 crore)
Power Finance Corporation (Rs 1,500 cr)
Power Grid Corporation (Rs 1,000 cr)
National Hydro Power Corporation and National Mineral Development Corporation.
From the banking sector:
Central Bank of India
United Bank of India
Punjab and Sind Bank
Besides DLF, real estate and construction will also see equity issues from Ansals, Akriti Constructions, Ahluwalia Contracts and DS Kulkarni.
In media and entertainment, Sun TV has already raised Rs 600 crore through IPO while equity issues from Amitabh Bachchan Corporation Limited (ABCL), Indian Express and RGV Film Factory are in the pipeline.
Equity issues from telecom sector include that of Idea, Hutchison and Tata Tele Services. Gujarat Adani Port Limited and Haldea Petro Chemicals Limited will also hit the market in 2006-07. Indian companies had raised Rs 23,684 crore through 102 public issues in 2005-06 compared to Rs 21,422 crore raised in 29 issues in the previous fiscal, a growth of 11 per cent.
