Three companies are expected to launch their IPOs in March to raise over Rs 12,000 crore in total, according to a Mint report. The equity market has been volatile in the month of February.
Bandhan Bank, state-owned fighter jet maker Hindustan Aeronautics (HAL), and ICICI Securities are looking to raise funds from the equity market.
The IPO frenzy has cooled down since the start of this year due to the consolidation seen in the market. The Long-term Capital Gains tax, and the volatility in the US market have been affecting Indian stock market.
Hindustan Aeronautics, the maker of fighter planes such as the MiG 21 and MiG-27, Jaguar, Su-30 MkI, will be a pure secondary offering. This means that the Indian government will dilute a 10 percent stake in the company. The order book of the company stands at Rs63,333 crore as of 31 July 2017.
Bandhan Bank is the only microfinance institution to receive a universal banking licence in 2015. The bank looks to raise Rs 4,000 crore via its IPO and will see a 10 percent stake dilution. The report said that the valuation of the company will be pegged at around at least Rs 40,000 crore.
There will also be an offer sale of 14.05 million shares by International Finance Corp. (IFC) as well as 7.56 million equity shares by IFC FIG Investment Company. They collectively own a 4.94 percent stake in the bank.
ICICI Securities will offer a pure secondary offering.
According to the report, ICICI Bank Limited will close to 64.42 million shares for Rs4,500 crore. The company offers financial services such as brokerage, financial product distribution, investment banking, merchant banking and advisory.
According to the report, January and February saw IPO amounting to Rs3,559 crore being released from six offerings.Mint
received no response to emails sent to HAL, Bandhan Bank and ICICI Securities.