SEBI has also given the nod to ASK Investment Managers, Nihilent and Muthoot Microfin

Prior to the global recession and financial downfall, the real estate sector was at its peak. The banks were liberal enough to give credit to large scale borrowers which resulted in a steep rise in the capital inflows and domestic liquidity.

But soon after 2013, the Indian real estate sector sank to the lowest and the liquidity crunch and inflation caused buyers to postpone their decisions. But as the time passed, by 2017-18, the Indian IPO market has surely seen some resurrection and real estate IPOs which had taken a backseat since last few years are once again getting in the game.

One of the well known Mumbai based real estate developer, Puranik Builders is all set to release its Initial Public Offering (IPO). Having already begun its work on IPO, sources say that Puranik has approached Edelweiss Financial Services as their investment bank.

The company has issued fresh shares worth of Rs. 810 crore along with an offer of 18,59,620 equity shares’ sale by its promoters and existing shareholders, the IPO of which is expected to fetch Rs. 1000 crore.

Apart from this, a management firm called ASK Investment Managers and two IT companies namely, Nihilent and Muthoot Microfin also approached Securities and Exchange Board of India (SEBI) for their initial share sales. Since a letter of approval or ‘observations’ is necessary from the regulator to launch public issues, these companies approached SEBI early in the month of June and August for the same.  The latest update confirms that SEBI had already issued ‘observation’ letters to these companies in the beginning of October.

According to market sources, ASK Investment Managers have issued fresh shares worth of Rs. 600 crore. Apart from this, they claim to have an offer sale of up to 1,35,69,405 shares by AI Global, a private equity company along with a whopping 44 lakh stocks by promoter Sameer Kotecha. Aggregating to Rs. 300 crore, the company has planned a private placement of 43,95,865 equity shares and aims to rise Rs. 2000 crore through IPO.

The remaining two companies Nihilent and Muthoot Fincorp are taking it slow and steady with Nihilent issuing a fresh share sale worth of Rs. 250 crore and Muthoot aggregating up to Rs. 500 crore. Nihilent is expected to go for offer sale of 21,25,599 equity stocks by Vastu IT, a promoter group entity while Muthoot has an offer sale of up to 16,310,072 equity shares.

With SEBI lowering the IPO listing timeline from to T-3 from T-6, a company has to wait 6 days after the closure of IPO to get listed on exchanges. It is expected that the new regulation will bring down investor exposure to market volatility. The IPO issuer will have an easier and quicker access to capital raised thereby ensuring the ease of doing business and the investors will also enjoy early liquidity.