Over 40 companies await SEBI nod for initial share sale, rights issue
MDT/PTI 13 August 2012

According to latest information available with SEBI, draft documents for IPO from as many as 33 companies and preliminary papers for rights issues from 11 entities are under process

 
New Delhi: More than 40 companies including Bhushan Steel and TV18 Broadcast Ltd are awaiting green signal from market regulator Securities and Exchange Board of India (SEBI) to come out with their initial share sales and rights issues, reports PTI.
 
The initial public offering (IPO) documents of six of the companies -- Jain Infraprojects, Shirdi Industries, NKG Infrastructure, Tunip Agro, Palco Recycle Industries and Splash Media & Infra -- have been pending with SEBI since 2010.
 
Draft documents for IPO from as many as 33 companies and preliminary papers for rights issues from 11 entities are under process, according to latest information available with SEBI.
 
The data compiled from September 2009 onwards is updated till 3rd August.
 
Last month alone, three companies -- Bajaj Finserv Ltd, City Union Bank and Reliance Mediaworks Ltd -- filed papers for rights issue. V-Mart Retail Ltd submitted draft document for an IPO on 23rd July.
 
Bajaj Finserv and City Union filed the documents on 18th July while Reliance Mediaworks did it on 30th July.
 
So far this year, the market regulator has received draft documents for 10 initial public offers.
 
As per regulations, SEBI might issue observations on a draft offer document filed with it within 30 days from the date of receipt of papers, among others.
 
In some cases, observations are issued only after receiving satisfactory reply from lead merchant bankers if SEBI has sought any clarification or additional information from them.
 
Other entities awaiting SEBI nod for IPOs include Javved Habib Hair and Beauty, Ambuja Intermediates, Repco Home Finance, Credit Analysis Research, Bohra Industries, Advanta India and Tara Jewels.
 
According to SEBI, the follow-on public offer document of Mukesh Udyog Ltd is pending since early 2011. The company filed its papers on 29th March last year.
 
Amid sluggish market conditions, the amount raised by way of initial public offers has dropped over 60% in the first six months of this year.
 
In the six months ended June, Indian companies mopped up just Rs1,264 crore, compared to Rs3,392 crore in the same period last year.
 
Major initial share sales so far this year include that of commodity bourse MCX's Rs663 crore IPO. Sesides, Tribhovandas Bhimji Zaveri and Specialty Restaurants have raised Rs200 crore and Rs176 crore respectively.
 
Comments
anantha ramdas
1 decade ago
Most IPOs and rights issue in the last few months have brought no cheer to the investing public and in any case the market itself has been very erratic and unpredictable.

Personally I would rather take the risk of investing in blue chip companies where even if I do not make a profit, I won't lose my capital base. Now, when IPOs come, invariably they are with varying "premiums" and after listing I can get them cheaper!

From your list of likely IPOs and rights only a handful are worth considering after serious
study.
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