Supply of equity in the Indian markets in the fiscal year 2018 may cross Rs1.5 trillion, logging a new high on the back of two major state-run insurers tapping the market, Credit Suisse said.
Initial public offers (IPOs) at Rs617 billion in the current fiscal year could be 35% higher than the previous peak seen in the fiscal year 2008, the securities house said in a report on Wednesday.
Two state-run insurance companies—New India Assurance Co. and GIC of India—filed their draft red herring prospectus ( DRHPs) last week. Of the anticipated Rs1.5 trillion supply, Rs503 billion is already in, the report said.
Also, around 85% of the supply is expected to be in financial services and/or for the government, particularly insurance. With valuations still elevated, the list may grow, particularly with the expiry of lock-in for investors in companies that were listed last year, the report said.
The expiry of lock-in for investors in companies that were listed last year could bring in more supply and financial services dominate here too, given the strong issuances in that space in the previous year.
The Best Advisory company in Indore- Delivering some stock market tips- one missed call @9644405056 or click here >> http://www.ripplesadvisory.com
No comments:
Post a Comment