13 IPOs called off in 2012

13 IPOs has already called off in 2012, says Jagannadham Thunuguntla, Strategist & Head of Research, SMC Global Securities Limited.

1. The year 2012 has already seen call-off of 12 IPOs. The probable amount that these 13 IPOs were planning to raise was to an aggregate of Rs 5,603 crore

2. The list of the 13 companies who have called-off their IPOs during 2012 include: Micromax, Embassy Property, Joyalukkas, Lokmat Media, VRL Logistics, Aravali Infrapower, Semantic Space Technologies, etc

3. This is in addition to the call-off of 29 companies during 2011 calendar year. The probable amount that these 29 companies were planning to raise was to an aggregate of Rs 32,400 crore.

4. So, starting 1st January 2011 till date, about 42 IPOs were called off. The total amount they were expected to raise was about Rs 38,001 crore.

5. All these 42 companies had valid SEBI approval in hand for their IPOs. Even then, they couldn't open their IPOs within the validity period of one year from the date of SEBI approval.

6. This surely will impact the Indian corporates ability in fund raising to finance their expansion projects resulting in slow down in capacity building and job creation.

7. Further, the government's disinvestment program which was supposed to bring public issues of several blue-chip PSUs couldn't take off. The recent lukewarm response to ONGC auction can also impact the confidence of the public issue market.

8. The secondary market and global liquidity hold key for the future of IPO market.