2015 ends on a good note for IPOs; Rs 13,600 crore raised

The longstanding drought in initial public offering (IPO) has finally come to an end, as 21 companies have entered Dalal Street in 2015 with IPOs to garner Rs 13,600 crore. This is the highest figure in five years, hinting at an impressive future in the coming years.

IPOs worth Rs 14,000 crore are in the final stages of hitting the market, and experts are of the opinion that the worth of upcoming projects are presently in excess of Rs 50,000 crore.

In a new development, companies from diverse sectors like renewable energy, QSRs, logistics, pharma, electronics and airlines have entered into the IPO space, adding to the depth of the market.

Amongst the best performers are InterGlobe Aviation, running the country's largest airline IndiGo (Rs 3,017 crore), Coffee Day Enterprises, owners of the largest coffee chain Cafe Coffee Day (Rs 1,150 crore), Alkem Laboratories (Rs 1,350 crore) and Inox Wind (Rs 1,020 crore).

Small and medium companies saw dedicated SME platforms, witnessing a fundraising of Rs 252 crore, compared to Rs 267 crore in 2014 and Rs 335 crore in 2013 by SME IPOs.

The coming year looks promising, expecting at least 32 issues worth Rs 14,260 crore. This includes Rashtriya Ispat Nigam (Rs 1,500 crore), AGS Transact Technologies (Rs 1,350 crore), Dilip Buildcon (Rs 750 crore), Nuziveedu Seeds (Rs 700 crore) and Paranjape Schemes (Rs 600 crore).

Experts opine that even though the primary markets have done better than the previous five years in 2015, many IPOs are still not suitable for retail investors.