The month of June is likely to see more than half a dozen initial public offers (IPOs) hit the markets with the cumulative value pegged between Rs 8,000-10,000 crore.
According to market sources, June is expected to see a mix of big and mid-sized main board IPOs even as some of the public issues of May seem to have received a rather subdued response.
The IPOs of Sri Lotus Developers & Realty (Rs 800 crore), Travel Food Services (Rs 2,000 crore), Laxmi India Finance (Rs 200 crore), Indogulf Cropsciences (Rs 300 crore) and NSDL (Rs 3,000 crore) are likely to be launched in June, say market sources.
This assumes significance as some of the IPOs in the current month – especially in the second half – saw a rather lackluster response from investors, especially in the retail and high net worth categories.
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The IPO of Schloss Bangalore, the owner of Leela Hotels, saw its retail segment getting subscribed 60 percent till 3pm today – the last day for submitting bids. Its HNI segment has been subscribed only 43 percent even though its institutional portion has been subscribed 5.5 times.
Similarly, the IPO of Aegis Vopak Terminals, which will also be closing today, saw its retail and HNI segments getting subscribed 65 percent and 39 percent, respectively.
To be sure, the IPO bidding period will be open for a few more hours and a large chunk of bids pour in in the last hour of the last day of the bidding period.
The current month saw the launch of as many as six main board IPOs with companies like Belrise Industries, Borana Weaves, Scoda Tubes and Prostarm Info Systems – in addition to Schloss Bangalore and Aegis Vopak Terminals -- coming to the markets.
The cumulative value of the IPOs was nearly Rs 9,000 crore.
Incidentally, while the ongoing IPOs are seeing a subdued investor response, some of the earlier IPOs during the month saw a strong response. For instance, the IPO of Borana Weaves was subscribed nearly 148 times. Similarly, Belrise Industries IPO was subscribed 43 times.
Experts believe that the drop in demand – in the retail and HNI segments -- in the ongoing issues could be because of bunching of issues as 4-5 IPOs have come in quick succession and concurrently as well. Bunching of issues have historically led to dilution of demand, they say.
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