Writing off pre-Budget negative sentiments in the IPO segment despite the secondary market having zoomed with benchmark BSE sensex crossing 25K since the formation of the Modi Government, Shriram Transport Finance Company MD & CEO Umesh Revanker holds that a large number of companies are lining up to enter the capital market in the next a few months spurred by the Union Budget next week.
"We expect the IPOs to pick up soon in a big way soon. However, it may take atleast about 4 months time as the issue preparation and SEBI clearances take time," said Revanker. STFC is coming out with a Rs 500 crore NCD offer of face value Rs 1000 each with the issue opening by July 02, 2014.
It may be recalled that adverse market conditions have forced 109 companies to call off their plans in the last three years from tapping the capital market for raising Rs 52,500 crore before the Modi Government was sworn in May 26 and the market witnessed an unprecedented bull run and clocking several lifetime highs.
Market observers, however, say that despite the sharp rally in the secondary markets the primary market has no takers. In the current fiscal, as per sources, there has been only three companies to have filed for IPOs despite the bullish secondary market even in this many has withdrawn their plans subsequently.
lavasa Corporation happens to be the only company after the Modi swearing in to file IPO papers so far in the current fiscal, the first being GMR Energy on April 3 therein after it withdrew its plans.