Is 2007 a bonanza for IPOs & FPOs ?

Year 2007 could be bumper one for Indian capital markets. As much as $12 billion is expected to be raised from the primary markets. The pipe line of IPOs and follow-on public issues (FPOs) is getting longer day by day. At present, over 450 companies are looking to collectively raise around$39 billion over the next 2-3 years, compared to only $5.35 billion were raised through primary market in 2006. these figures are compiled by Prime Database, a database dedicated to the primary capital market.

Of the proposed IPOs and follow-on issues, real estate companies, including the much talked about DLF offer, account for nearly $ 5bn. Energy companies like Power Finance Corporation, Power Grid Corporation and National Hydroelectric Power Corporation are also expected to raise around $1-1.5 billion. Another $ 1 billion is expected from telecom companies, including Ideal Cellular and Spice Telecommunication.

Many banks are also planning to raise money through the capital markets. SBI has a FPO of Rs. 12,000 Crore in the pipeline while Canara Bank's has a Rs. 4,000 Crore one. Central Bank of India, United Bank of India, Indian Bank and Vijaya Bank are some of the other banks that will raise money from the primary market.