India’s Housing Development and Infrastructure and S Kumars on Tuesday raised a combined $300 million through share sales, sources with direct knowledge said, boosting the outlook for new equity offerings.
A host of Indian companies, both from public and the private sectors, are preparing to launch share sales over the next few months in a booming stock market that is trading at its highest in 32 months.
State-owned Coal India will launch its initial public offering, which aims to raise as much as $3 billion, on Oct. 18, the chairman of the world’s largest coal miner said last month.
Developer Lavasa Corp filed a draft prospectus on Tuesday with the stock market regulator to raise up to 20 billion rupees ($425 million). The IPO could hit the market by December, a company official said.
Others in the pipeline include a follow-on share sale by state-run Steel Authority of India Ltd and Shipping Corp of India, and an up to $160 million IPO by financial services firm Future Ventures.
HDIL, S Kumars
HDIL, which provides real estate infrastructure services, has raised $250 million in a shares sale to qualified institutional investors, two sources with direct knowledge of the deal said.
The sale, which was launched on Monday, received strong response from overseas institutional investors, said one source, who declined to be named as he was not authorised to speak to the media.
The shares were sold at 268.18 rupees each, the sources said. This represented a discount of 5.4 percent to the stock’s close on Monday.
The HDIL stock was trading down 4.9 percent at 269.40 rupees at 0912 GMT, after falling as much as 5.2 percent earlier in a main Mumbai market that was up 0.8 percent. The stock is down 25 percent this year.
JPMorgan was the sole bookrunner for the offering, the sources said. Officials at JPMorgan in India and HDIL were not immediately available for comment.
Separately, textile firm S Kumars Nationwide raised $50 million through a sale of shares to institutional investors, three sources with direct knowledge said.
The shares were sold at 80 rupees each, they said, reflecting a 5.2 percent discount to their Monday’s close of 84.35 rupees.
The S Kumars stock was down 5.2 percent at 79.80 rupees in the afternoon.
The sources said demand for the share sale was strong with investors bidding for more number of shares than on offer.
Edelweiss Capital, JPMorgan and Antique Capital Markets were the arrangers to the issue, the sources said. Officials at S Kumars and the lead managers were not immediately available for comment.
Indian companies have raised more than $14 billion through share sales so far this year, compared with $16 billion raised in 2009, according to Thomson Reuters Data. Total equity offerings in 2010 are expected to reach $30 billion.