11 IPOs as companies cash in on bull run
By IANSMonday, September 20, 2010
MUMBAI - Even as benchmark indices for Indian equities move up closer to their pre-slowdown highs achieved 32 months ago, the prevailing bullish sentiments have encouraged 11 companies to enter the stock markets all in the same week.
“The current week starting Sep 20 2010, features 11 IPOs (initial public offerings) which remain open. This will be the busiest week in the Indian primary market’s history after 1995,” said Jagannadham Thunuguntla, equity strategist, SMC Global Securities Ltd.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) moved up a handsome 311 points or 1.59 percent to close Monday at 19,906.1 points. It touched an intra-day high of 19,927.3 points.
Similarly, at the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty rose 1.62 percent higher to 5,980.45 points.
Till Sep 20, the Sensex has soared 10.7 percent fuelled by capital inflows from foreign institutional investors (FIIs). During the same time, FII investment in equities has crossed $3 billion.
“The liquidity, which was flooding the secondary market, is all set to flood the primary market as well,” said Thunuguntla.
Among the 11 companies whose IPOs hit the markets this week are: Orient Green Power Limited with an issue size of Rs.900 crore, Ramky Infrastructure Limited (Rs.530) crore and VA Tech Wabag (Rs.500 crore).
