Outlook Money Outlook Money, May 2018 | Page 21

Some companies awaiting IPO approval for 2018-19: ■ NATIONAL STOCK EXCHANGE OF INDIA LTD: `10000.00 ■ SREI EQUIPMENT FINANCE LTD: `2000.00 ■ VISHWARAJ SUGAR INDUSTRIES LTD: `374.00 ■ ROUTE MOBILE LTD: `600.00 ■ CREDIT ACCESS GRAMEEN LTD: `90.00 ■ NAZARA TECHNOLOGIES LTD: `1000.00 ■ CAPRICORN FOOD PRODUCTS INDIA LTD: `500.00 ■ INDOSTAR CAPITAL FINANCE LTD: `700.00 ■ FLEMINGO TRAVEL RETAIL LTD: `2423.00 . ■ JOHN ENERGY LTD: `300.00 ■ SEMBCORP ENERGY INDIA LTD: `4095.00 ■ SANDHYA MARINES LTD: `600.00 ■ TCNS CLOTHING CO.LTD: `750.00 ■ DEVI SEA FOODS LTD: `900.00 ■ NEKKANTI SEA FOODS LTD: `750.00 ■ HDFC ASSET MANAGEMENT CO.LTD: `4000.00 ■ K.P.R.AGROCHEM LTD: `210.00 ■ ATRIA CONVERGENCE TECHNOLOGIES PVT.LTD: `1500.00 All the amount is in Rs Crore and the source for it is PRIME database. Haldea, QIPs were dominated by banks, with their contribution being 53 per cent (`33,248 crore) of the overall amount.Out of 45 IPOs that were raised in the market, 17 had a prior PE/VC investment. Offers for sale (OFS) by such PE/VC investors accounted for 13 per cent of the total IPO amount and stood at `10,831 crore, while offers for sale by promoters accounted for a further 64 per cent of the IPO amount at `52,340 crore. According to Haldea, 17 out of 45 IPOs got a mega-response of more than ten times while eight IPOs were oversubscribed by more than three times. While 14 IPOs were oversubscribed between one and three times, data for six IPOs was not yet available. Haldea also highlighted that FY 2017-18 witnessed an all-time high for SME IPOs and divestments as well. According to him, there were 155 SME IPOs with the highest ever amount collected (`2247 crore), while the divestments target was overachieved as the Government raised `98,965 crore in FY 2017- 18. Apart from this, offers for sale through stock exchanges, which is for dilution of promoters’ holdings, saw an increase from `8,390 crore last year to `18,438 crore raised in this year. Outlook for 2018-19, according to Haldea, is likely to see more volatility in the secondary market, and this is expected to have an impact on companies’ fundraising plans. While there are 12 companies holding SEBI approval and wanting to raise over `10,395 crore, another 18 await SEBI approval for raising around `29,282 crore. By Suyash Desai Air travel may cost more if crude oil prices rise Air travellers may have to pay more for their travel as airlines grapple with higher ATF prices. With prices of crude oil firming up, an ATF price rise is inevitable. A 20 per cent rise in crude oil prices from the current $65-70 per barrel could bring down operating margins to 4-6 per cent. Airlines may have to pass on the increased fuel cost to consumers, which could affect demand, according to a report by CARE Ratings. The report says that the combined passenger traffic is expected to double in the next five years with a growth rate of 14-15 per cent annually. It adds that the ratio of domestic vis-à-vis international passengers is expected to narrow further as airlines offer tickets priced at par with train tickets between select destinations. Two new major airports at Navi Mumbai (Mumbai region) and Noida (NCR) are expected to add sizeable capacity. Domestic traffic growth is expected to emanate from the smaller and UDAN cities which were untapped and unserved till now, says the report. Addition of up to 100 million passenger capacity is expected at UDAN scheme airports over the next 3-5 years. With the expected rise in capacity, airlines expect to add 500-600 aircraft over the next 5-7 years to meet the increased demand. www.outlookmoney.com May 2018 Outlook Money 19