Mumbai, July 1 (IANS) Promoters of 15 companies let their proposals for raising funds through initial public offerings (IPOs) expire in the first six months of 2011 amid fears that it would not draw favourable response from investors, a leading brokerage said Friday.
Companies have to file a draft prospectus with the capital markets regulator, Securities and Exchange Board of India (SEBI) to bring out issues for raising funds.
‘During the period between January to June 2011, there are 15 IPOs whose SEBI approval validity has ended. Meaning thereby, the SEBI validity period for these IPOs has expired, and they could not come with the IPOs,’ said Jagannadham Thunuguntla, strategist and head of research, SMC Global Securities Ltd.
The companies which have seen their IPOs expire are Jindal Power, Reliance Infratel, Gujarat State Petroleum Corporation, Sterlite Energy, Lodha Developers, BPTP, Ambiance, Glenmark Generics, Neptune Developers, Kumar Urban Developers and AMR Constructions.
The total amount they were planning to raise was to the tune of about Rs.25,000 crore.
‘This list is featured largely with real estate and power industries. That may be because, real estate is completely out of favour of the market,’ said Thunuguntla.
‘Power has also become out of favour of the market because of the fact that several IPOs from the power industry in the past have given dismal returns to the investors,’ he added.
