Wednesday, October 12, 2016

IPO market heads for mega year; 50 cos raise $2.93 bn in 2016......

FINALLY THE IPO MARKET HAVE STARTED TO TAKE OFF...

We have positively entered the Cautiously Optimistic Phase of the stock market... Few more months say around 9 to 12  months the little bit of fear which is left today in the stock market will fade away permanently and thereafter we will enter the Optimistic Phase of the Bull Market for the next 4 to 5 years..

The year 2016 is set to be a record-breaking year for Indian IPO market as 50 firms have entered Dalal Street with initial share-sale offers to garner USD 2.93 billion and an impressive pipeline is already in place for the coming months, says a report. Besides, another 22 companies have lined up IPO plans in 2016 bringing the year-end estimated total deal value to USD 5.8 billion, more than double from last year's deal value of USD 2.18 billion. According to a report by Baker & McKenzie, Indian IPOs are set to hit a six-year high, with USD 2.93 billion already completed and a further USD 2.90 billion of IPOs in pipeline for 2016. Further, 16 companies are in the pipeline to be listed domestically in 2017, raising USD 5.86 billion. This includes Vodafone's highly anticipated USD 3 billion initial share-sale plan, which could potentially surpass the state-run Coal India's IPO to become the country's biggest public issue.

Dual listing on both exchanges - BSE and NSE - accounted 98.8 per cent of companies listings by value in 2016 to date, raising a total of USD 2.9 billion from 19 IPOs, including ICICI Prudential Life Insurance's USD 909 million IPO, which is the country's biggest IPO this year. Improved business confidence is also driving Indian companies to look at growth and market expansion opportunities overseas by way of cross-border IPOs. This provides a means to access risk capital that is not available in India, and also to connect with investors who better understand and appreciate their businesses.

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