When real estate giant DLF hits the capital market with its initial public offer later this year, it might write a new chapter in the booming IPO market by becoming Asia's biggest equity deal of 2007.
There are equity deals worth about $30 billion in the pipeline for this year across all Asian markets, out of which there are equity issues worth over six billion dollars planned for the Indian market alone.
Among all the Indian deals in pipeline for this year, the biggest is from DLF, which is estimated to raise about $2.5 billion (over Rs 11,500 crore) after a failed attempt in 2006.
The deal is set to become India's biggest ever public offer, but could be outsmarted by the PSU banking giant State Bank of India (SBI), which is understood to be mulling over a follow-on offering worth about Rs 12,000 crore.
While there are offers worth about USD 17 billion in the pipeline in China and Hong Kong, the Indian deals in the schedule are worth more than those in rest of the Asia.
There were 92 public offerings in 2006 raising about USD 5.54 billion (over Rs 24,000 crore), while about 100 IPO filings have already been made in less than two months this year with an estimated total proceeds of about USD 6.3 billion.
The analysts expect the momentum to further intensify in coming months and total IPO proceeds for the year could surpass the record high amount of about 6.8 billion dollars (Rs 30,500 crore) raised in 2004.
The total number of public offerings is expected to rise to about 150 in 2007, from just 34 in 2004, as the companies are increasingly turning toward the stock market to raise funds with rising interest rates dampening the prospects for debt funding.