Fundraising by India Inc through IPOs is expected to gather some momentum in the coming months with IPOs worth Rs 3,000 crore lined up, according to Prime, a company that compiles capitral market's data. On the immediate horizon are the Rs 1000 crore IPO from Ortel Communications, Rs 750 crore IPO from IFCI Factors, Rs 700 crore IPO from Bharat Business Channel and the Rs 700 crore IPO from Inox Wind.

Also, the market could see offerings from some of the 21 companies already holding SEBI approval and another 12 companies who have filed with SEBI and are awaiting approval. During the first quarter of the current fiscal (2013-14) fund raising by companies through IPOs was in a sorry state with companies managing to mobilize just Rs 942 crore through IPOs. Fundraising through offer for sale (OFS) through stock exchange mechanism however was robust with Rs 4,507 crore being mopped up by this route.

According to Pranav Haldea, Director of Prime, the huge increase in funds raised through the OFS route was due to many companies having to meet with SEBI’s deadline for minimum public shareholding. Incidentally, in the corresponding period of the preceding year too mobilization through IPOs was subdued at just Rs 718 crore). However this year it was marginally better ion terms of number. The first quarter of this year witnessed 4 IPOs and 51 OFS, compared to 5 IPOs and 3 OFS in the corresponding period last year.

The amount raised through OFS (Rs 4,507 crore) was also higher compare to same period last year (Rs 274 crore). The largest OFS was of Rs 1008 crore (Oracle Financial Services). The biggest disappointment for the primary market has been the lack of divestments by the government. Despite a huge target of Rs 54,000 crore (Rs 40,000 crore from government-owned companies and Rs 14,000 crore from sale of residual stake in non-government companies) and continuing announcements, only 1 divestment (MMTC Rs 572 crore) took place in the first quarter of the current fiscal.