With the primary markets showing strong revival on conducive regulatory norms, Sebi chairman UK Sinha on Thursday said NRIs have begun to show interest to tap the domestic capital markets to raise funds.
Sinha noted that the number of IPO issuances in the last three years and the amount raised is going up in a healthy manner, helped by stringent disclosure norms issued by the Sebi. Observing that the IPO pipeline going forward seems strong, he said only 11 IPO filings are pending with the Securities and Exchange Board now.
“Many NRIs, especially those in the Gulf countries, are looking for listing their companies on the domestic bourses rather than going to other parts of the world,” Sinha said at a summit organised by the Association of Investment Bankers of India (AIBI).
According to him, while 17 out of the 25 companies which launched their initial share sales in the current fiscal are trading above the issue price, there is a need to analyse the reason behind why the remaining eight companies are trading below the issue price.