New Delhi, Oct 24 (UNI) Even as the first half of the current fiscal turned out to be dull in terms of business generation, the country's primary market is set to breathe free as over 400 initial public offers, intending to raise a phenomenal Rs 1,50,000 crore, are expected to hit the market in the near future.
Of the 400 issues, 13 IPOs involving Rs 2,730 crore, already have the approval of market regulator Securities and Exchange Board of India (SEBI), while 75 seeking to raise Rs 19,000 crore, have filed the offer documents and are waiting the regulator's nod.
According to data released by Prime Database, the country's leading database on the primary capital market, a sum of only Rs 7,500 crore was raised through public issues during the first half of the current fiscal 2006-07, which did not come anywhere close to market expectations at the begining of the year.
According to Prime Database MD Prithvi Haldea, this is a good time for the government to enlarge the investors' base and the capital market and to raise money that it so desparately needs.
For this the government should use the IPO route which is the most transparent, non-controversial route.
PSUs should also be encouraged to raise fresh capital from the market for their expansion programmes, he added.
The biggest disappointment for the primary market has been the lack of disinvestments by the government. In terms of amount raised, the first half ended with a mobilisation of only Rs 7,581 crore as per prime, almost similar to the corresponding period of the preceding year which had seen issues worth Rs 7,622 crore.
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