32 cos approach Sebi with IPO proposals in 1 year
Looking to tap into the upbeat investor sentiment, as many as 32 companies, including Lavasa and UFO Moviez, have filed draft IPO papers with capital markets regulator Sebi in the first year of the Modi government.
Companies are expected to continue to file IPO papers in the coming months as the overall sentiment in the market is positive for equity issuances, experts said. Since the NDA government led by Narendra Modi took charge on May 26, 2014, 32 companies have filed the draft red herring prospectus with Sebi for launching Initial Public Offers.
In the previous 12 months, only 13 companies had approached Sebi with IPO proposals. "After the change of the government at the Centre in May last year, there has been a significant change in sentiment and outlook towards India, which has prompted companies to file IPO papers," Quantum MF Head Equity Funds Atul Kumar said.
Most of the companies plan to utilise IPO proceeds for capacity expansion as well as working capital