Three companies, including local search engine Just Dial, raised around Rs 1,315 crore in January-June, 2013, through initial public offers, a moderate rise of 9.5 per cent over that in the same period last year.

During the first six months of 2012, five companies had garnered a total of Rs 1,201 crore through IPOs.

Market experts, however, said the moderate rise of 9.5 per cent in fund raising through IPOs cannot be seen as revival in the primary market.

Unless one sees at least five IPOs from various sectors in a month lining up to raise capital successfully, it cannot be called a revival in the primary market, they added.

“The secondary market needs to be very strong for IPOs to be successful, but still a company with strong fundamentals come out its public issue it would generate strong demand from investors,” a stock broker said.

Besides, two companies withdrew their offers after poor response and many firms did not launch their offers after doing all the groundwork and obtaining the necessary approvals in the January-June period.

Just Dial came out with the largest public issue of this year so far raising Rs 950 crore through an IPO in May. This was also one of the biggest IPOs by an Indian Internet company.

Among other public issues, Repco Home Finance garnered Rs 270 crore, while multi-brand retail chain V-mart raised about Rs 95 crore.

The companies raised funds mostly for financing expansion plans and meeting working capital requirement.

Two firms, Sai Silks (Kalamandir) and Scotts Garments, withdrew their offers, collectively worth Rs 228 crore, due to poor response.

During January—June 2012, packaging firm Plastene India and component supplier to automotive industry Samvardhana Motherson Finance pulled out their public offers worth Rs 1,743 crore after failing to generate sufficient investor interest.

In 2012-13, more than Rs 6,000 crore worth capital was raised by 10 firms through IPOs. In comparison, 33 firms had together garnered Rs 5,808 crore in 2011-12.

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