Four companies - Micromax Mobiles, Pride Hotels, Betul Oil and Tara Jewels have refrained from coming out with IPOs worth over R700Cr, letting their regulatory approvals lapse.

There are at least 10 other companies who have valid approval in hand and are left with just two months in their validity period of one year from the date of approval.

These companies include Marck Biosciences, Tijaria Polypipes, Tara Health Foods, Embassy Property Developers, Dev Procon, VRL Logistics, Lokmat Media, Aravali Infrapower, Joyalukkas India and Semantic Space Technologies. The total amount that is expected to be raised by these 10 IPOs is to the tune of about R4,210Cr.

Micromax Informatics, which has raised PE funding from TA Associates, Sandstone Capital, Sequoia Capital and Madison India Capital had filed for an IPO in September2010 to sell 2.15 crore shares for R426Cr. JM Financial, Citigroup, Edelweiss and Nomura were the book-running lead managers to the issue. Micromax's regulatory approval lapsed on January 13.

Tara Jewels has re-launched it's IPO in the first week of January, after it failed to launch its R50Cr IPO before the regulatory approval lapsed on January 3.

Pride Hotels(R125Cr) and Betul Oil(R100Cr) are the other two which failed to bring out their IPOs in the stipulated time.

Last year, 29 companies, including Reliance InfraTel Ltd, Lodha Developers, Ambience, Glenmark Generics and BPTP, axed their IPO plans.

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January 31, 2012 11:07 AM

One: Sometimes market sentiments will create panic to Management to withdraw issues. Two: Lead Managers and Co managers are greedy in fixing high priced IPOs and public offer itself above 15 PE to 25 PE which is not digested by an experienced old aged brokers, investors who crossed their age 50 years plus. (because they had seen issues with par or below Rs 50 in those days for eg:- Yuken (IPO Rs10) (Rain Commodity Rs 10) (Prism Cement Rs 10) (LIC Housing Rs 45) (Guj Gas Rs 10) Three: Managements are NOT sparing their time to listen what their top level experienced employees says. Four: Fixing unexpeienced Merchant Banker / Investment banker for the issue with through- away issue management fees, who do not know what was the markets in 80's and 90's. all these circumstances forcing some companies to withdraw their issues. - Posted by suresh babu Recommended by 0 Readers