IPO

IPO investors open to invest in sectors like dairy firms, micro-finance and healthcare

Gone are the days when traditional industries such as construction and engineering used to dominate the primary market to raise funds. These days, sectors like dairy firms , micro-finance, healthcare and staffing services are crowding the initial public offering (IPO) space. Investment bankers say investors are open to investing in these companies because of their stronger growth prospects.

“I see the trend (of non-traditional and service sector IPOs) continuing because many of these sectors have high potential for growth. That is why investors have shown a preference for these kinds of stories,” said S Ramesh, MD, Kotak Investment Banking.

Of the 11 listings in the current year, majority of the companies have few or no comparable peers in the listed space. These firms collectively raised Rs 7,343.07 crore. Some of these include Narayana Hrudayalaya, Teamlease Services, Quick Heal Technologies, Equitas Holdings, Thyrocare Technologies, Ujjivan Financial and Parag Milk. Their issues were oversubscribed 1-52 times and most of are trading above their issue prices as well, up 9 to 51%.

IPO investors open to invest in sectors like dairy firms, micro-finance and healthcare

Vinay Menon, MD, JP Morgan India, said the success of these IPOs can be attributed to the fact that many of them cater to the broader Indian consumption theme.

“Investors are looking at names which are playing the India growth theme as well as banks because they are a direct corelation to the GDP and growth of the country,” Menon said.

Regulatory compliances to reduce foreign ownership, exits by private equity investors and value unlocking by promoters have resulted in the emergence of such IPOs in recent times.

“Newer sectors coming with IPOs is good for the market as it lends more depth to the market as well as attract a larger pool of investors,” said Nipun Goel, head of investment banking at IIFL.

The forthcoming non-traditional and services IPOs include Quess Corp, Advanced Enzyme and New Delhi Centre for Sight. Future IPO trends will also include life insurance and stock exchanges.

Leading private insurers ICICI Prudential and HDFC Standard Life are reportedly looking to raise over $1 billion via IPO this financial year.


 

14 Thoughts on “IPO investors open to invest in sectors like dairy firms, micro-finance and healthcare

  1. Will on July 5, 2016 at 3:22 am said:

    I have read this post and if I
    could I wish to suggest you few interesting things or advice.

    Maybe you can write next articles referring to this article.
    I wish to read more things about it!

  2. Will on July 6, 2016 at 1:50 pm said:

    Ahaa, its nice discussion on the topic of this post at this place at this blog, I have read all that, so at this time me also commenting at
    this place.

  3. Kristen on July 10, 2016 at 9:51 am said:

    I’ve been browsing online more than three hours today, yet I never found any interesting article like yours.
    It is pretty worth enough for me. In my opinion, if all web owners and bloggers made good content as you did,
    the web will be much more useful than ever before.

  4. Jane on July 16, 2016 at 4:56 am said:

    Greetings! Very useful advice within this article!
    It’s the little changes which will make the biggest changes.
    Many thanks for sharing!

  5. Frank on July 23, 2016 at 1:35 am said:

    There’s certainly a lot to learn about this issue.

    I really like all the points you have made.

  6. This is a topic which is near to my heart… Take care!
    Exactly where are your contact details though?

  7. Frank on July 29, 2016 at 10:05 am said:

    Ahaa, its nice conversation regarding this post
    at this place at this weblog, I have read all that,
    so at this time me also commenting here.

  8. Kiersten on July 29, 2016 at 10:32 pm said:

    Hello just wanted to give you a quick heads up. The text in your article seem to
    be running off the screen in Ie. I’m not sure if this is a format issue or something to do with
    web browser compatibility but I thought I’d post to let you know.

    The design look great though! Hope you get the problem resolved soon.

  9. Jimmy on July 30, 2016 at 9:25 am said:

    Howdy! Someone in my Myspace group shared this
    site with us so I came to look it over. I’m definitely enjoying the information.
    I’m book-marking and will be tweeting this to my followers!
    Fantastic blog and great design and style.

  10. Teresita on August 9, 2016 at 8:34 pm said:

    When someone writes an piece of writing he/she retains the plan of a user in his/her mind that how a
    user can know it. So that’s why this article is outstdanding.
    Thanks!

  11. Kathlene on August 9, 2016 at 10:39 pm said:

    Appreciation to my father who informed me concerning this website, this blog
    is in fact amazing.

  12. Maryan on August 30, 2016 at 3:29 am said:

    I don’t even know how I ended up here, but I thought this post was good.
    I do not know who you are but certainly you are going to a famous blogger if you
    are not already 😉 Cheers!

  13. Reading your website is pure pleasure for me, it deserves to go viral, you need
    some initial traffic only.

  14. pandora on April 5, 2017 at 1:05 am said:

    It is in reality a great and useful piece of information. I’m satisfied that you just shared this useful info with us. Thank you for sharing.

Leave a Reply

Your email address will not be published. Required fields are marked *

Post Navigation