Mumbai: Despite the two initial public offers (IPO) launched during this financial year receiving an overwhelming resp-onse from investors, merchant bankers said that it is too early to view it as a signs of revival in the primary market.
According to them, the regulatory filings of the draft offer documents are yet to pick up pace and it would take a couple of months for companies to tap the primary market in a big way.
“The sentiments have definitely improved, though it didn’t result in the launch of many initial public offers. However, in the last three months, we have seen an increase in the activity levels and since document preparation would take at least 2-3 months we can see a couple of companies filing their offer documents with the regulator,” said Indraneil Borkakoty, managing director, IDFC Invest-ment Banking on the sidelines of the announcement of Rs 350 crore public offer from Sharda Cropchem Ltd.
In April this year, the Rs 180 crore public offer from Wonderla Holi-days was subscribed 38 times while the Rs 197 crore initial public offer from Snow-man Logis-tics, which was laun-ched last week got subscribed 60 times.
While investor resp-onse to these offers remained impressive indicating enough appe-tite for fresh quality papers, not many companies have come forward to file their draft offer documents with the Securities and Exchange Board of India (SEBI).
