Rs 39,000 cr IPOs in the works

Companies have lined up initial public offers to raise a whopping Rs 39,000 crore (Rs 390 billion) over the next six months. This is thrice the amount raised in 1995, the previous record year, as well as thrice of that raised in the primary market between 1997 and 2003.

Around Rs 29,000 crore (Rs 290 billion) have already been raised between January and September, 2004. The second half of 2004-05 will see almost 33 per cent more being raised through primary issues.

Prospective issuers include 17 public sector undertakings, 11 public sector banks, four private sector banks, and six media companies.

Prime Database lists 80 companies that are planning IPOs. There are six companies each from the telecommunications, information technology and financial services sectors, five from health care and 19 from other industries, including automobile, power and aviation.

Some of the companies are going to the market for a second time. While some have already finalised the issue size, others have given estimates of the money they propose to raise.

According to data on the Securities and Exchange Board of India website, 14 offer documents are pending with the market regulator at various stages of clearance. These offers expect to raise Rs 3,541.42 crore (Rs 35.41 billion).

Issues worth Rs 3,691 crore (Rs 36.91 billion) have already received Sebi's approval. The list includes the Rs 150 crore (Rs 1.5 billion) UTV Software Communications issue and Industrial Development Bank of India's Rs 3,000 crore (Rs 30 billion) bond issue.

Offers in the pipeline include Shoppers Stop's Rs 150 crore (Rs 1.5 billion) issue and Deccan Chronicle Holdings' Rs 114.36 crore (Rs 1.14 billion) IPO.

However, the markets are most excited over the issues of telecom majors. Reliance Infocomm is planning to raise almost Rs 10,000 crore (Rs 100 billion) through a mix of domestic and international offerings.

Although no confirmation is available, BPL Communications is said to have sounded out merchant bankers on raising Rs 500 crore (Rs 5 billion) though a mix of instruments.

Hutchison Essar Telecom is said to have been making enquiries about raising Rs 1,500 crore (Rs 15 billion) and Tata Teleservices Rs 2,500 crore (Rs 25 billion).

The Infrastructure Development Finance Corporation's board has approved a Rs 1,000 crore (Rs 10 billion) float and SET India is planning a Rs 200 crore (Rs 2 billion) issue.