Slowdown no dampener, 6 cos refile IPO prospectuses

A piece of Chaplinesque wisdom: ‘A tramp, a gentleman, a poet, a dreamer, a lonely fellow, always hopeful of romance and adventure’. The com
edian, had he been alive today, would not have hesitated to add merchant bankers to the list of “perennial hopefuls”.

Expecting a market turnaround in coming months, six companies have re-filed IPO prospectuses with the regulator since June.

Companies like Alkali Metals - currently open for subscription - and Persistent Systems, which had earlier deferred their public issue plans after the market crash in January, are now willing to take a chance in a choppy market.

According to Prime Database, Gini & Jony, Globus Spirits, Mahindra Holidays & Resorts, MBL Infrastructure and MCX are other companies that have re-filed draft red herring prospectuses with the regulator.

“There is no doubt, markets are very challenging in these times. We’ve considered a few possibilities; we'll come out with our issue at the appropriate time. If the market is not favourable for the issue, we might just drop the idea on the whole,” said Enam Financial Consultants merchant banking head S Subramaniam.

According to Kotak Mahindra Capital’s investment banking head S Ramesh, it will be difficult to get a unidirectional movement in equities under current circumstances.

“Issues will have to be launched in phases or 'windows' when the market is less volatile. Current market condition is not favourable for launching issues,” Mr Ramesh added.

Source: EconomicTimes