KOLKATA: The global liquidity meltdown and subsequent bloodbath in the country's stock market is slowly taking a toll on India Inc's fundraising plan s with corporates unwilling to compromise significantly on their valuations battered over the last couple of trading sessions.
Statistics available with Delhibased research firm Prime Database say as many as 28 companies against 22 in August, planning to collectively raise Rs 19,463.91 crore, have allowed their IPO approvals to lapse as on October 17, 2008. This includes big names like Reliance Infratel (Rs 6,000 crore), Jaiprakash Power Ventures (Rs 4,000 crore), UTI Asset Management (Rs 2,000 crore), Acme Telepower (Rs 1,200 crore), Mahindra Holidays & Resorts India (Rs 1,000 crore) and MCX (Rs 600 crore). Also in limbo are 14 more companies (against 12 in August), who were collectively aiming to raise Rs 13,580 crore and holding valid Sebi approvals. This list includes some big names like Adani Power (Rs 5,630 crore), Future Ventures India (Rs 2,660 crore), NHPC (Rs 1,670 crore) and Oil India (Rs 1,400 crore). According to recent information, these companies will also allow their approvals to expire given the dull market sentiments. A company is required to enter the market within 90 days of receiving Sebi approval. When contacted by ET, Prime Database managing director Prithvi Haldea said: "The primary market is totally dependant on secondary market which is in a terrible state. The demand for new paper is obviously very weak in a market like this. When there are no buyers for already listed stocks, which have a proven track record in public domain, why would any one risk his money on new stocks." "Issuers are nervous and unless there is stability in the secondary market for one whole quarter, primary market will not revive. For companies, IPO is once-in-a-lifetime event and no one would dare push their luck and face the prospect of a disaster. We have already seen Emaar and Wockhardt daring the market and biting the dust," he added. Some 29 companies, including Bharat Oman Refineries (Rs 2,400 crore), Godrej Properties (Rs 750 crore), have already filed their offer documents with Sebi and plans to collectively raise about Rs 6,848 crore. They are awaiting approval. A few like Essar Power, GMR Energy , ICICI Securities and SRL Ranbaxy , who have announced their IPO intentions, have been forced to put their plans on hold. "For companies whose IPOs were linked to project financing, the present market spells bad news. They will either have to opt for expensive debts or look for private equity which is not easy to come by. Companies, who were planning IPOs just as the market was giving money, or they wanted market validation of their wealth, or wanted money for acquisitions , can simply wait for better times. Companies where IPO was a disinvestment - by promoters, the government or private equity funds - can also afford to wait," said Mr Haldea. http://economictimes.indiatimes.com/Market_News/Bears_bug_India_Inc_28_IPOs_lapse/articleshow/3611568.cms A graceful taunt is worth a thousand insults. ~Louis Nizer~ --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
