It is raining IPOs in India at a time when most of the world's stockmarkets are on a topsy-turvy ride on worries that Greece might exit the eurozone.
Interglobe Enterprises, which runs Indigo Airlines, filed for an initial public offering Monday, as did staffing firm TeamLease and e-commerce player Infibeam. In the past two weeks, Cafe Coffee Day, Matrix Cellular and RBL Bank have also filed for IPOs.
IndiGo, India's largest airline by market share, plans to raise about Rs 2,500 crore by selling 10 percent of its equity. Founded by Rahul Bhatia and Rakesh Gangwal, former CEO of U.S. Airways, IndiGo has been the only profitable airline in the last year. The IPO will involve issue of fresh shares worth Rs 1,272 crore and sale of over 30 million of stock held by existing shareholders at a similar valuation, making it the biggest offering since Bharti Infratel's in 2012.
Last week Coffee Day Enterprises Ltd, which runs Cafe Coffee Day chain, said it plans to raise Rs 1,150 crore in an IPO. RBL Bank also said it was planning to raise about Rs 1,100 crore.
The companies are filing at at time when Greece's defaults have raised fears of a worldwide contagion. However, experts say that India is not likely to be affected much, and investors seem to be in agreement. On Wednesday, the benchmark BSE Sensex gained 200 points.
"Some variables are in favour and some are not, but this is as good a time as any. These guys have prepared for the last 8-9 months for the IPO and are filing at a time conducive for them," said Vaibhav Sanghavi, Managing Director, Ambit Investment Advisors Pvt. Ltd in a phone chat with HuffPost India.
IndiGo's IPO might make airline stocks attractive again, after recent setbacks. "Airline IPOs since 1990s have hurt investors, especially small investors, significantly, and IndiGo’s IPO is expected to restore confidence,” said Kapil Kaul, chief executive officer (South Asia), Capa Centre for Aviation.
Here is a partial list of companies which have filed offer documents with SEBI in the last one month.