Forget China: Check Out These 10 Mega-IPOs From India

India Vision

Earlier this year, we told you about the madness of China’s IPO market, how money was flooding in, and driving record share sales to prices never before seen.

Now we take a look at India, the other major Asian economy burning from all the hot money flowing in.

India’s government wanted 2010/2011 to be 2-years of massive public sector disinvestment, but it isn’t going great thus far. The aim was to raise $8.5 billion, but the government is only at $450 million according to a report by Reuters.

But one IPO, the last on our list, sent the previous total skyrocketing to $3.5 billion: Coal India Ltd.

Private sector IPOs have led the pack thus far, but it’s the big government share offerings that are likely to wow in future months.

According to NDTV Profit, India’s Finance secretary Ashok Chawla believes the government is confident that all their IPOs will come out strong. Oil and Natural Gas Corp Ltd (ONGC) and Indian Oil Corp Ltd will see their shares go on sale in the last quarter of FY 2010.

So while there’s much more to look forward to, there’s plenty of boom already in this Indian IPO binge.


Size of FPO: $2.6 billion

(Rs. 116.2 billion)

Change in stock price: -102 (-26.91%).

Incorporated as a public enterprise in 1958, NMDC Ltd. is India's largest iron ore producer and exporter. Despite increasing demands for steel in Asia, the lower price band on the shares was marked 31% below the market price. The sale was managed by BS Securities, Citigroup, Edelweiss Capital , Kotak Mahindra Capital, Morgan Stanley and RBS Equities.

Source: The Economic Times

(Currencies converted to October 25 value)


Size of FPO: $1.8 billion

(Rs. 82.8 billion)

Change in Stock Price: +0.8 (0.39%).

Set up in 1975 NTPC Limited is India's largest state-ownder power generating company. After its IPO in 2004, the company had a follow on public offering in February this year. The FPO was managed by ICICI Securities Limited, Citigroup Global Markets India Private Limited, J.P. Morgan India Private Limited and Kotak Mahindra Capital Company Limited.

Source: NTPO

(Currencies converted to October 25 value)

Commercial Engineers & Body Builders Co. Ltd. - CEBBCO

Size of IPO: $1.5 billion

(Rs. 68.7 billion)

Change in Stock Price: +3.15 (2.87%)

Commercial Engineers and Body Builders Co. Ltd. makes locomotive and vehicle bodies. The initial response to its IPO was lukewarm but analysts expect that to change. The revenue from the IPO will go towards setting up a railway project.

Source: Reuters

(Currencies converted to October 25 value)

Rural Electrification Corporation Ltd. - RECLTD

Size of FPO: $785.8 million

(Rs. 34.8 billion)

Change in Stock Price: +123.75 (49.61%)

Incorporated by the government in 1969, Rural Electrification Corporation Ltd. funds and promotes the use of electricity in rural India. The FPO was managed by Kotak Mahindra Capital Company Limited and DSP Merrill Lynch.

Source: IPO Alert

(Currencies converted to October 25 value)

Infrastructure Development Finance Company Ltd. - IDFC

Size of IPO: $766.4 million

(Rs. 34 billion)

Change in Stock Price: +1.35 (0.66%)

Founded in 1997, Infrastructure Development Finance Company Ltd. both finances infrastructure projects and maintains assets on existing ones. It's sale due closed on October 18, was extended for four days. Investments of Rs. 20,000 (approx. $450) and more in their infrastructure bonds, came with an income tax exemption.


(Currencies converted to October 25 value)

D B Realty Ltd. - DBREALTY

Size of IPO: $338.1 million

(Rs. 15 billion)

Change in Stock Price: -4.35 (-0.97%)

Right before D B Realty made its shares public, Indian newspapers warned investors to stay away from the medium-cap real estate development company which focuses on residential, commercial and retail markets. Analysts thought the shares were priced too high. despite red flags, the shares were oversubscribed 2.63 times.

Source: The Economic Times

(Currencies converted to October 25 value)

Oberoi Realty Ltd. - OBEROIREAL

Size of IPO: $231.9 million

(Rs. 10.2 billion)

Change in Stock Price: +25.55 (9.24%)

Oberoi Realty, a real estate developer focused on residential, office, retail and hospitality projects in Mumbai, was oversubscribed 12.07 times on the last day of its IPO, earlier this month. The IPO was managed by JP Morgan India, Morgan Stanley India, Kotak Mahindra and Enam Securities.

Source: The Economic Times

(Currencies converted to October 25 value)

Orient Green Power Company Ltd. - GREENPOWER

Size of IPO: $202.8 million

(Rs. 9 billion)

Change in Stock Price: -2.55 (-5.73%)

Orient Greenpower Company Ltd. India's largest producer of renewable energy power plants was fully subscribed at the end of its IPO. Its shares were priced lower than those of regulated competitors. Given its nascency and its dependence on seasonal changes, the company was seen to have risks and analysts indicated that investors would have to keep their stock for a few years before they benefited off high earnings growth. The IPO was managed by JM Financial, Goldman Sachs, UBS and Axis Bank.

Source: Reuters

The Hindu Business Line

(Currencies converted to October 25 value)

Hathway Cable & Datacom Ltd. - HATHWAY

Size of IPO: $148.7 - 165.6 million

(Rs. 6.6 - 7.35 billion)

Change in Stock Price: -13.9 (-6.95%)

Hathway Cable and Datacom Ltd. first entered the cable and entertainment market in 1995 and is positioning itself as India's leading cable provider. While its shares were deemed reasonably priced, the markets was plagued with mixed reports about its bankability. Competitors like Tata, Airtel and BSNL have given the company stiff competition.

Source: The Hindu Business Line

(Currencies converted to October 25 value)

Coal India Ltd.

Size of IPO: $3.4 billion

(Rs. 152 billion)

Change in Stock Price: Coal India is set to be listed on November 4.

Coal India Ltd. produces more than 350 million tons of coal every year. As of March 2010, the company operated 471 mines in India. The sale which was set at Rs. 245 a share has had a large impact on disinvestment in the country. The IPO was managed by Citigroup Inc., Enam Securities Pvt., Deutsche Bank AG, Bank of America Corp., Morgan Stanley and Kotak Mahindra Capital.

Source: Bloomberg

(Currencies converted to October 25 value)

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