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

Pic: Shutterstock

Fashion | On 23rd Aug 2019

32 companies sign fashion pact to present at G7 Summit

Thirty two top global fashion brands and retailers today announced...

Pic: Kohl's Corp

Retail | On 23rd Aug 2019

Kohl's revenue down 3.1% to $4,430 mn in Q2 2019

Kohl's Corporation, a leading omnichannel retailer, has reported net...

Pic: GTS

Apparel/Garments | On 23rd Aug 2019

Himax makes 3D vision-assisted cementing solution for shoe

Himax, a fabless semiconductor solution provider, and GTS have...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

In 10 years' time, everything will have the responsible factor integrated

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Headhonchos, Indian fashion industry

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Awanda Booth,

Awanda Booth

Held every year in New York City, Surtex is a global business-to-business...

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

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

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

Leave your Comments


August 2019

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

news category


Related Categories:

Advanced Search