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Market Rout compels 6 firms to delay IPO



Concerned over the recent volatility in the domestic stock markets, six companies have reportedly put off their initial public offering (IPO) plans.
The companies that are looking for stabilisation in markets to launch their IPOs include L&T Infotech, Parag Milkfoods, Catholic Syrian Bank, AGS Transact, Thyrocare Technologies and Bharat Matrimony.

The last month's sell-off in the domestic stock markets weighed heavily on the stock prices of companies that had hit the markets during late last year, with some of them falling by around 20% in a month compared to about 6% decline in the benchmark indices.
Some firms might even contemplate trimming their issue sizes either by cutting the price band or by reducing the number of shares to be issues in public offers, sources told The Financial Express.


Infrastructure firm Dilip Buildcon has already reduced its IPO size to Rs 430 crore from Rs 650 crore as planned earlier, the company said in a refiled draft prospectus to the Sebi.
"Primary markets are complimentary to secondary markets and hence any corrections in stock markets would have impact on the IPOs," Prithvi Haldea, chairman, Prime database told the daily.
However, two recent IPOs of Precision Camshafts and TeamLease Services witnessed positive response from the subscribers despite the prevailing uncertainty in the markets. The two companies plan to raise nearly Rs 400 crore each.
Additionally, Quick Heal Technologies, a Pune-based anti-virus provider, is set to issue its IPO next week. The company plans to raise just over Rs 400 crore through the offering.
Last year, 21 companies got listed on the Bombay Stock Exchange (BSE). Of those, 12 companies managed to gain anywhere between 1.3% and 102% after their listings, while eight have declined by roughly 1.76% to 35.28%.


Sandip Ginodia , Director 

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

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