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Investors opt for IPOs with good fundamentals

Thu, Mar 24, 2016, 01:45 PM
Initial Public Offers (IPOs) have touched an all-time high with 21 companies garnering Rs 13,330 crore in the year ending February 16, PRIME database suggests.

These include Cancer care specialist HealthCare Global Enterprises that received Rs 650 crore this March, and Infibeam Corporation, the first e-commerce company, which proposed to raise Rs 450 crore.

Small and Medium Enterprises raised Rs 287 crore through IPOs during the year ending January 2016.

In contrast, 52 companies had raised Rs 33,098 crore via the IPO route during the financial year 2010-11. Over the years, small investors have have shunned the primary market becasue of the lacklustre nature of the secondary market.

However, in the last financial year, the investors had shown some confidence in logistics and health care. The knowledgeable investors are showing confidence if the fundamentals of the company concerned are good. As a result, companies with a stong fundamental footing have been oversubscribed.

The companies that have got the Securities and Exchange Board approval have raised about Rs 12,000 crore through the primary market. These include Larsen & Toubro Infotech, Mahanagar Gas, Ujjivan Financial Services, AGS Transact Technologies and Equitas Holdings.
Agency: Ap7am Desk

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