Following the ‘you cannot time the market' philosophy, many companies are taking the chance and entering the unstable stock market to raise money. There are several small-sized initial public offerings (IPOs) lined up for the coming weeks, at a time when Government and big corporates remain cautious to test market to raise funds.
M and B Switchgears is entering the capital market with a Rs 90-93-crore IPO, the price band of which has been fixed at Rs 180-186 a share. The issue opens on September 28 and closes on October 5.
The company plans to use the proceeds of the issue to set up a new grid connected solar photovoltaic power plant at Gagorni in Madhya Pradesh. The issue will constitute 25 per cent of the post-issue paid up capital of the company.
Taksheel Solutions, an IT and telecom software company, has also announced its Rs 80-crore (on the upper price band) IPO. The price band is fixed at Rs 130-150 a share. The issue opens on September 29 and closes on October 4.
The company will be diluting 25.17 per cent of its post issue paid-up capital. The proceeds of the IPO will be used to set up new software development centres at Special Economic Zones in Hyderabad and Warangal, for acquisitions and strategic initiatives and to meet working capital requirements.
Another company to enter the capital market with an IPO is Indo Thai Securities with a Rs 28-30-crore issue at a price band of Rs 70-84 a share. The issue opens for subscription on September 30 and closes on October 5. The brokerage will use the proceeds for financing business growth and for meeting long-term working capital requirements. The promoters' stake post the issue will be 60 per cent.
Flexituff International too is looking at raising around Rs 100 crore through their IPO which opens on September 29.
Since mid-August the Indian stock-markets have witnessed extreme volatility. While the BSE Sensex tanked 704 points on September 22, the Sensex was up 472 points on Tuesday.
BHEL FPO
On Monday, the Union Heavy Industries and Public Enterprises Minister, Mr Praful Patel said the Government is waiting for the market sentiment to improve to launch the follow-on public offer of Bharat Heavy Electricals.
The Government had plans to mop-up about Rs 40,000 crore in this fiscal.