No ! we are not talking about cricket here. IPO season is back (Did we say IPL ?). Suddenly there seems to be a lot of activity around the IPO markets, apart from the QIP issues. After the Mahindra Holidays expensive issue and its not-so-successful listing, many companies have lined up the queue to launch their issues. Prominent among them are Adani Power, JP Power Ventures, National Hydroelectric Power Compnay – NHPC and Oil India.
According to SEBI data, 18 more companies have lined up and finalized their plans to raise more than 6000 crores in the next 2 to 3 months. Not many of them are even worth looking at. Even Adani power needs a re-look, recently it had its Pre-IPO placement done at Rs.47 (last year) and the issue to the public is likely to be priced between Rs.100-110. Looking at such issues, I think we were right in using the word IPL – Initial Public Looting.
We can hope at least the PSU IPOs are reasonably priced. Companies make hay while the sun shines ! And Investors ?