IPO boom reaching its peak?
Next week, there is a lot of action expected in the initial public offer (IPO) market. Three road shows – New India Assurance, Mahindra Logistics and Khadim India, two listings – Indian Energy Exchange and General Insurance Corporation (GIC Re) and the opening of the Reliance Nippon Asset Management Company issue. Market players, however, believe that this could be the last leg of aggressive fund raising in the current market. “Most of this fund raising is highly dependent on mutual fund houses due to consistent inflows and Life Insurance Corporation of India. It would be interesting to see how many retail investors show interest in these issue as there is fatigue now,” says an investment advisor.
Right of passage
The government is in the process of launching two big issues that of New India Assurance and Bharat-22 exchange traded fund. Banking sources say the Centre is struggling to decide which of the two should go to the market first. Those handling the respective issues are lobbying to launch their offering first, says a person involved in the transaction. “The refund and listing process for GIC Re’s Rs 11,300-crore IPO will complete soon. Once it’s done, the government will take a call on which to launch first. New India and Bharat-22 both are ready to hit the market but both being large issuancea, there has to be sufficient time gap between the two,” the person said.