Indian companies acquire Rs 1,050 crores via IPOs

The Indian Companies interestingly, have garnered a total of Rs. 1050 Crores through initial public offers (IPOs) during the beginning of this year, which is a remarkable increase of about 36% over the same period in the last fiscal year, according to Prime Database, the leading database on primary capital market in India. Among the 16 IPOs which hit the capital market in the first half of the current fiscal year, 15 were from the Small and Medium Enterprise Sector (SME). However, there was one non-SME IPO, “Just Dial” that attained Rs.919 Crores single handedly, which credited for 87 percent of the total mobilization recorded. Further, around 29% of the total amount endorsed flows from the information technology space firms. Through such IPOs, the Indian Companies are aiming to raise and expand their capital, mobilize their investments and become publicly traded enterprises, enlarge and diversify equity base and efficient management through liquid equity participation. Such initiative is allowing the Indian companies to knock into a wide pool of potential investors to provide capital for future growth, repayment of debt and working capital. Therefore, such stellar expansion and escalation of SMEs would hopefully, excite the attentions of the investors as well as the SMEs would get better visibility and wider reach to the investors. The positive move of the SMEs would foster the sustaining economic growth of the country.