6 companies refile IPO prospectuses with the regulator since June on expectation of turnaround in coming months. Companies like Alkali Metals, currently open for subscription. Apart from that, Persistent Systems is now willing to take a chance in an irregular market, which had earlier deferred their public issue plans after the market crash in January. Gini & Jony, Globus Spirits, Mahindra Holidays & Resorts, MBL Infrastructure and MCX are other companies that have re-filed draft red herring prospectuses with the regulator.
The volatility in the market has been putting off promoters looking to raise funds through IPOs. The downward journey in the market has forced several companies seeking to raise equity through the public issue.
According to S Subramaniam, merchant-banking head of Enam Financial Consultants, "There is no doubt, markets are very challenging in these times. We've considered a few possibilities; we'll come out with our issue at the appropriate time. If the market is not favourable for the issue, we might just drop the idea on the whole.
According to Ashutosh Maheshwari, Motilal Oswal Investment Advisors CEO "We filed for MBL Infrastructure IPO only in September. We expect the market to improve a bit by the time we get necessary Sebi approvals. We expect to launch the issue early next year, by which time the market should consolidate a bit. MBL is a very small-sized issue. I think we could sail through, even if market sentiment is not all that great.
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