Over dozen cos apply for public offers in FY'15
New Delhi: Looking to tap into the upbeat investor sentiment, over a dozen companies including Videocon D2H and Rashtriya Ispat Nigam Ltd have filed initial papers with market regulator SEBI for getting listed in the current fiscal.
Since April, 13 firms have filed the Draft Red Herring Prospectus (DRHP) with SEBI to launch an initial public offer (IPO), while SMC Global Securities Ltd sought SEBI's approval for its Follow-on Public Offer (FPO).
All these firms filed their initial papers after the General election verdict was announced in mid-May.
Of these, the Securities and Exchange Board of India has already given nod to the IPOs of Lavasa Corporation Ltd, Adlabs Entertainment Ltd, Ortel Communications Ltd and Monte Carlo Fashions Ltd. However, these four firms are yet to launch their public offers.
Besides, the regulator has sought clarification or additional information from the merchant bankers of some of the firms.
Most of the companies plan to utilise IPO proceeds for capacity expansion as well as working capital requirements.
These filings come at a time when the equity market has been on an upswing this year in the wake of bullish investor sentiments.
According to market experts landslide victory of BJP-led National Democratic Alliance (NDA) in the General elections has perked up investor sentiment and prompted companies to file IPO papers.
Moreover, companies, that debuted on the stock markets this financial year are trading above their issue price giving big returns to investors, also helped others to file for their public offers.
So far in the current fiscal (2014-15), the 30-share benchmark Sensex has gained over 26 per cent spurred by robust fund flows and revival of risk appetite amid signs of improving economic conditions.