Home / Knowledge / News / Textiles / Textiles sector to raise Rs 2.75 bn funds from IPO: ASSOCHAM
Textiles sector to raise Rs 2.75 bn funds from IPO: ASSOCHAM
31
Jul '09
With early signals of easing global recession and an upsurge in stock market in 2009, India Inc is going high for expansion activities and planning to come up with initial public offers (IPOs) worth more than Rs 16,000 crore mainly in sectors as infrastructure, IT/ITeS, hospitality and textile, according to a study carried out Associated Chambers of Commerce and Industry of India (ASSOCHAM).

As per the Assocham Financial Pulse (AFP) analysis of the emerging IPO trendts for the remaining part of the current fiscal, Infrastructure is emerging as the top sector with more than Rs 10,000 crore to be mopped up from primary market by nine companies in sphere of power, energy, shipping and construction.

Assocham President Mr. Sajjan Jindal said, 'during first half of 2009, due to the superior performance of the Indian stock market, second only to China, in the Asia-Pacific region, the companies are weighing higher expectations from renewed investor's sentiments to raise funds from the primary market”.

As venture capital investment in India has also dropped nearly 72 per cent during the first half of 2009, Indian companies are seeking to finance their activities through the IPO route, added the AFP Study.

Among the infrastructure sub-sectors, power sector has been found to be the leading fund raiser with an estimated sum of Rs. 6,236 crore to be raised from the forth coming IPOs. The study stated that the power companies are adding huge investments for their capacity addition leading to an increased demand for funds.

Major runners looking to raise funds through IPO in Power generation & supply sector business are NHPC Ltd., Adani Power Ltd., India bulls Power and Usher Eco Power Ltd.

The dismal performance on the power generation front has a tremendous scope for catching up to the likes of China, which is adding capacity at the rate of about 1,00,000 megawatt (MW) a year. India has not been able to add even 10,000 megawatt (MW) in any single year. Several companies in the private sector are coming to invest in the sector to take advantage of a fast developing market.

In energy sector, Oil India Ltd. engaged in the activities of oil exploration, drilling & refining is next to power sector opting for public listing in current fiscal with an expected amount of Rs. 1,400 crore. It is followed by JSW group which is planning to raise Rs. 1,000 crore for its infrastructure and logistics business.

Among other expected forthcoming public offers in the infrastructure sector, ARSS Infrastructure Projects Ltd. and Godrej Properties Ltd. engaged in business of housing, civil construction and real estate are likely come up with Rs. 870 crore public offer while Pipavav Shipyard Ltd. is planning to raise Rs. 700 crore.

IT/ITeS stands second major sector after infrastructure which plans to grow more and come up to raise funds through public offers of amount Rs. 4,858.60 crore by 2009-10. In this segment Excel Infoways Ltd. emerges as a big runner with other players Euro Multivision Ltd., Radiant Info Systems Ltd. and Infinite Computers Solutions (India) ltd.

Among the other major sectors which are planning to raise funds from capital market by the end of FY'10 are Hospitality (Rs. 301.12 crore), Gems & Jewellery (Rs. 300 crore) and Textiles (Rs. 275 crore).

Associated Chambers of Commerce and Industry of India


Must ReadView All

Textiles minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search