Indian companies seem to have the key for bringing recovery signs in the global IPO markets, as more and more institutional investors around the world are looking up to India and China to lead the revive in the struggling IPO markets. Besides India and China, Brazil is also in the race to come out from the global financial meltdown by the end of 2009.
Many firms in India have announced their plans to go for initial public offering (IPO) and JSW Energy is one such firm, which has plans to raise around Rs.2,700 cr through an initial public offering for their expansion plans in India. The company is part of JSW Group which is being run by Sajjan Jindal.
Sahara Group's real estate arm is also planning for a mega IPO in the next few months. Indian companies are now tapping non-banking sources to meet their funds requirements. EdServ Softsystems, Gemini Engi-Fab and Web 18 are among many other companies which have opted to go for initial public offering in the current year.
Many more such companies are now in line to raise capital through IPOs to support their future growth plans in Indian and overseas markets. As per an estimate, IPOs totaled around Rs.14,626 cr between April and October, while the amount was just Rs.1,515 cr in the corresponding period in the year of 2003.
The IPO markets in the above-mentioned nations are in a healing mode, while these markets in developed nations (US, Singapore, UK and Australia) are expected to show revival signs between Q1 of 2010 and Q2 of 2011.
However, investors are still picky about IPOs and don't expect market stabilization in the near future. It is to be noted that investors opt for riskier new offerings only when the markets are performing well. Besides this, the IPOs of small and mid cap firms won't do much good to the global capital markets. However, things have started changing for better and till the time the picture of IPO markets becomes rosy, let's hope for the best.
0 comments:
Post a Comment