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Power firms top fundraising via IPOs

Power firms top fundraising via IPOs
After remaining muted between FY12-FY15, the number and size of initial public offerings (IPOs) is on the rise. State Bank of India in its recent Ecowrap report highlighted that FY18 has witnessed a significant interest in the IPO market with Rs49,175 crore being raised in just a seven-month period.
Interestingly, this is more than the amount raised between FY12-FY16 put together. Among sectors, between FY10 and FY18 (up to 31 October 17), a maximum amount of Rs43,921 crore has been raised by power firms, followed by insurance, mining, minerals and metals, finance, and construction.
The insurance sector has come to the market in FY18 with four firms alone raising Rs31,320 crore, said the report. It expects the current upsurge in fundraising via the IPO route to last as long as the upswing in market continues. Further, the performance of firms which got listed in recent years will determine the future course for the IPO market, it added.
The Mint, New Delhi, 5th December 2017

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