80 Cos to raise over Rs 40,000 crore in IPO

With the success of IPOs floated by NTPC and TCS, the pipeline to raise public funds is getting longer. Besides dozens of small hopefuls wishing to ride the IPO wave, the queue has over 80 companies to raise another Rs 40,000 crore.

The list includes issues from Gujarat Industries Power, Gujarat State Energy Generation, Gujarat State Petroleum, Haldia Pertochemicals, Mahanagar Gas, Power Finance, Power Grid, Rashtriya Chemicals, REC and SCI. ‘‘Then there are at least 11 public sector banks in the queue, which includes Allahabad Bank, Bank of Baroda, Dena Bank, PNB and Syndicate Bank,’’ says Prime Database.

In 2004 (till now), Rs 30,098 crore has already been raised and this has been done by a handful of 27 companies, according to Prime. The peak by amount ever was in 1995, which had seen 1,444 companies raise Rs 13,887 crore.

The characteristics of the current boom are one or combination of well-established companies or promoters, divestments either by the government or by venture capitalist and follow-on offerings. All this augurs well for the investors, the capital market and the economy.