Construction, engineering firms' IPOs flood market
Engineering and construction companies are rushing into the markets with public floats at a time when possibilities of a mid-term poll is increasing, reports Vyas Mohan.business Updated: Oct 02, 2007 22:11 IST
With the US Federal Reserve's interest rate cut warding off fears of a liquidity crunch and the benchmark indices at an all-time high, engineering and construction companies are rushing into the markets with public floats at a time when possibilities of a mid-term poll in the country is increasing.
In September, as many as eight companies in the business of property development, engineering and construction have filed prospectuses with market regulator Securities and Exchange Board of India (SEBI).
Market experts believe the success of realty giant DLF's Rs 10,500-crore initial public offering (IPO), the biggest till date, and peaking indices are conducive for these companies to achieve higher valuations for their issues. And, with political uncertainty in the country increasing, these companies are also scurrying to raise capital before any probable mid-term poll.
"After the big-bang issue of DLF and with markets at their all-time highs, the time is appropriate for these companies to issue shares as they would get better valuations," said Nimish C Shah, managing director of Fortune Financial Services that is managing the approaching public issue of Manjeera Constructions.