IPO Plans Delayed To Prevent LIC Clash
Because of LIC’s upcoming mammoth listing, which is estimated to drain $10 billion from the market, a chemicals business that had received markets regulator Sebi’s clearance to launch an Initial Public Offering (IPO) is taking its time with its equity-raise plans. Likewise, a drug company has postponed its initial public offering (IPO) to provide a partial departure to a long-term investor.
According to merchant bankers, several firms that have filed forms with Sebi to go public are awaiting for LIC’s massive IPO to finish before launching their initial public offerings. “Companies do not want their offers to clash with that of LIC’s. We do not expect to see any other IPO being launched up to 10 days before the LIC offer opens and 15 days after it closes,” stated the leading merchant bankers.
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It’s only a 2-3-week phenomenon, as per Garg, and it’s unlikely to stymie any of a company’s capital-raising long-term alternatives. “In all fairness, if an IPO of this scale and size goes through, it will only reinforce the confidence of investors in the capital markets and will increase India’s weight significantly and help with more allocation to the market. ”
According to a recent study by Axis Capital, 41 firms have received regulatory approval to make their initial public offerings. BVG India, which cleans and maintains the Parliament House, Prime Minister’s house, and several other amenities, is planning an IPO to garner roughly Rs 1,300 crore. It has postponed the debut of the deal.
According to a recent study by Axis Capital, 41 firms have received regulatory approval to make their initial public offerings. BVG India, which cleans and maintains the Parliament House, Prime Minister’s house, and several other amenities, is planning an IPO to garner roughly Rs 1,300 crore. It has postponed the debut of the deal.
According to Sebi guidelines, companies that file for an IPO intending to acquire another firm are only allowed to utilize 25% of the funds raised for M & M&A, with an optimum of 10% for general corporate objectives. According to merchant bankers, it will decrease the size of IPOs.