The IPO comprises a fresh issue of stock worth up to Rs 600 crore and an offer for sale of up to 13.6 million shares by AI Global and 4.4 million shares by promoter Sameer Koticha.Last month, IndiaMART Inter-MESH, an online portal for business products and services, saw strong demand for its IPO. The Rs 475 crore issue was subscribed 36 times and the stock listed at a premium of 21 per cent over its offer price on July 4. “The success of recent few IPOs and their returns will prompt investors to put more money into the primary market.”Companies may also rush to launch IPOs to beat a possible flood of OFS once the regulator approves new minimum public shareholding norms as proposed by the government in the budget and based on the advice of investment bankers. “There are more than 50 DRHPs (draft red herring prospectuses) that have been filed with Sebi. If the next few IPOs trade well, it could mark the revival of primary markets and you could see a strong supply of paper though IPOs and QIPs (qualified institutional placements).

Source: Economic Times July 17, 2019 01:52 UTC