22 June, 2021

The Magnet Syndrome

The TCS IPO will set about a churning in the stockmarkets

Abhijit Bhatlekar
The Magnet Syndrome
It's the biggest public issue ever in Indian private sector's history. And it's expected to create major ripples in the stockmarkets. In fact, speculation is rife among brokers and investment analysts about the impact of the tcs issue, expected to raise between Rs 5,000 and Rs 6,500 crore and slated to hit the market by end-July or the beginning of August this year. For one, it may help calm the post-election topsy-turvy sentiments at the bourses. Says Prithvi Haldea, MD, Prime Database, "I expect a number of other companies, which had postponed their issues because of the falling Sensex, to finalise their plans now." Information available with Prime Database shows that 20 firms, who wish to raise over Rs 6,500 crore, have either received sebi's formal approval or are waiting for the clearance. Add another Rs 18,000 crore worth of mega issues that are in the pipeline.

Experts also contend there's bound to be a churning of existing portfolios among institutional investors, who wish to participate in the tcs issue. Such buyers generally assign a sectoral weightage and allocate...

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