Though the Indian market has reached great heights after 5 years, the usage of major part of the funds raised by the IPO was not utilized for the purpose of development or business expansion. The major part of the fund raised was utilized for the repayment of the debt, said the sources. Also the IPO this year has faced a lot of private equities trying to unload more shares what they had with some major firms. Hence the marketers have told that the Indian market IPO was more utilized for the repayment of the debts and exiting of private equities.
2015 is the best in 5 years
Marketers says that this is the best year in the past five years as the companies involving in IPO all together have raised a total fund of Rs. 13000 crores this year. The primary market of India is going to end up now and the market has made the best performance of all the years. Increased number of companies into the Indian market and the different models they have followed are the key reasons behind the best performance of Indian market this year, says the market analysts and many other investors.
The successful IPOs like Alkem labs and Dr. Lal Path labs have contributed so much for achieving this benchmark of the Indian market. The positive point is that there is yet another company that will be hitting the share market soon by the third week of this November. Narayana Hrudayalaya, the famous chain of health care centers in India has planned to enter into IPO and also has announced very recently that the company shares will be listed in both the national stock exchange and bombay stock exchange by the third week of December. The company has announced the price of their shares also.
Private equities raised Rs. 6700 crores in IPO
Out of Rs. 13,145 crores raised by the companies in this year through IPO; Rs. 6700 crores was raised by the private equities only. They have raised this money by unloading their shares that they were holding with many firms. By unloading the shares, many private equities have got themselves relieved from the company shares and have told that they have got good returns out of the shares what they were holding so long. Many private equities have just reduced the size of their shares and have not completely relieved themselves out of the concerns.
A 20 to 25% of the fund raised was utilized for the purpose of repayment of the debts. Chairman of the Prime database, Prithvi Haldea has told that the private equities have got a chance at last to escape from many companies. Further, the promoters have deliberately sold the smaller issues and made it as bigger issues. At the end of the year, though the Indian market has achieved something great, the utilization of the achievement don’t seem to be in the development path but only to pay the past. To know more on the recent happenings in initial public offering, follow us at https://twitter.com/tradinginvestme