New Delhi : As many as 11 firms, including AGS Transact Technologies and ASK Investment Managers, have approached capital market regulator Sebi in August to raise over Rs 7,000 crore through IPOs largely to fund their expansion projects and working capital requirement.
Studds Accessories, Senco Gold, Harsha Engineers, Mrs Bectors Food Specialities, Sansera Engineering, NDairyihilent, Dodla and Shyam Metalics and Energy and Xelpmoc Design and Tech are the other companies that have filed preliminary papers with market watchdog.
Together, these companies are estimated to garner over Rs 7,200 crore through initial public offers (IPOs), merchant banking sources said.
Equity shares of these firms are proposed to be listed on BSE and NSE. Most of the funds raised through the IPOs will be used for expansion plans, repayment of loans availed by these firms and to support working capital requirement, according to the draft papers filed by the respective companies with Securities and Exchange Board of India (Sebi).
Besides, some of the firms believe the listing of equity shares on bourses will enhance their brand name and provide liquidity to existing shareholders. Further, some of the firms are taking the IPO route to provide exit to their existing shareholders like private equity and venture capital firms.
The IPO market has seen heavy activity so far this year as 21 companies have mopped-up close to Rs 28,000 crore through initial share-sale.