India Info Feb 1, 2009 After Four Months, Firms Start Daring IPO Market
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"The IPOs of such small and mid cap companies cannot be taken as a trend setter for the Indian capital markets. In such market situations, any company coming out with IPO means it is in dire need for funds," Nexgen Capital s Equity Head Jagannadham Thunuguntla said.
![After four months, firms start daring IPO market
Sunday, February 01, 2009 14:25 [IST]
New Delhi: Indian primary market is likely to witness some activity after a hiatus of four
long months with at least three Indian firms planning to enter the capital market, but
analysts are still not sure whether this could indicate revival in the IPO segment.
Chennai-based EdServ Softsystems and Gemini Engi-Fab, whose issues open this
week, plans to mop up about Rs 24 crore and Rs 45 crore respectively, as per data
available on the National Stock Exchange.
EdServ Softsystems would be hitting the capital market with an initial public offer of over
39.73 lakh shares and the company has fixed the price band in the range of Rs 55-Rs
60.
Gujarat-based Gemini Engi-Fab would come out with an IPO of 55 lakh shares to raise
an estimated Rs 45 crore.
Besides, Web18,a group company of Network18 has also made a confidential filing with
the SEC for a Nasdaq listing.
Earlier last week, Network18 Media had said that they have registered a draft
registration statement on confidential basis to the US Securities and Exchange
Commission for an initial public offering of American Depository shares.
Marketmen however believe the response from investors would be somewhat muted as
there is no appetite for investment and this does not indicate a recovery in the IPO
market.
quot;The IPOs of such small and mid cap companies cannot be taken as a trend setter for
the Indian capital markets. In such market situations, any company coming out with IPO
means it is in dire need for funds,quot; Nexgen Capital s Equity Head Jagannadham
Thunuguntla said.
The proposed fund raising by the two companies is nominal against the backlog of close
to Rs 75,000 crore (15.27 billion dollar) worth of IPO plans held back by about three
dozen companies due to the meltdown in the stock market last year.
Source : PTI](https://image.slidesharecdn.com/india-infofeb-1-2009after-four-months-firms-start-daring-ipo-market-1233506725094843-3/85/India-Info-Feb-1-2009-After-Four-Months-Firms-Start-Daring-IPO-Market-1-320.jpg)
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India Info Feb 1, 2009 After Four Months, Firms Start Daring IPO Market
- 1. After four months, firms start daring IPO market Sunday, February 01, 2009 14:25 [IST] New Delhi: Indian primary market is likely to witness some activity after a hiatus of four long months with at least three Indian firms planning to enter the capital market, but analysts are still not sure whether this could indicate revival in the IPO segment. Chennai-based EdServ Softsystems and Gemini Engi-Fab, whose issues open this week, plans to mop up about Rs 24 crore and Rs 45 crore respectively, as per data available on the National Stock Exchange. EdServ Softsystems would be hitting the capital market with an initial public offer of over 39.73 lakh shares and the company has fixed the price band in the range of Rs 55-Rs 60. Gujarat-based Gemini Engi-Fab would come out with an IPO of 55 lakh shares to raise an estimated Rs 45 crore. Besides, Web18,a group company of Network18 has also made a confidential filing with the SEC for a Nasdaq listing. Earlier last week, Network18 Media had said that they have registered a draft registration statement on confidential basis to the US Securities and Exchange Commission for an initial public offering of American Depository shares. Marketmen however believe the response from investors would be somewhat muted as there is no appetite for investment and this does not indicate a recovery in the IPO market. quot;The IPOs of such small and mid cap companies cannot be taken as a trend setter for the Indian capital markets. In such market situations, any company coming out with IPO means it is in dire need for funds,quot; Nexgen Capital s Equity Head Jagannadham Thunuguntla said. The proposed fund raising by the two companies is nominal against the backlog of close to Rs 75,000 crore (15.27 billion dollar) worth of IPO plans held back by about three dozen companies due to the meltdown in the stock market last year. Source : PTI