Welcome to the Great Indian equity sale. If Chinese initial public offers (IPOs) arrived with a big bang in FY07, Indian IPOs are set to raise the pitch in FY08. A number of companies are slotted to hit the market with large public issues.
While this may ensure that investment bankers get record bonuses this year too, it makes life more difficult for the average investor. The huge overflow of equity can drag down returns in the near term. The current year is expected to see some large issues, with DLF inarguably being the largest one.
Other biggies include ICICI Bank, State Bank of India (SBI), ICICI Holdings (insurance business), Omaxe, Power Grid Corporation and Oil India. The total amount likely to be raised is Rs 60,000-75,000 crore, based on available information. This is thrice the amount raised in FY07.
Read more in The Economic Times article.
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