First News
Volume:7, Number:25
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Business & Finance 4
THIS WEEK

Indian Companies Call Off IPOs as Economy Slows After Note Ban

Green Signal Bio Pharma, a Tamil Nadu-based company, recently cancelled its IPO after it failed to get enough bids

Vodafone, which was scheduled to bring out India’s largest ever IPO at Rs.165 billion, has deferred the issue to the next fiscal. Matrimony.com, a matchmaking portal, postponed its IPO due to weak market conditions. The above trend indicates that companies have turned cautious with the growth projection down by almost 2 percentage points. Companies that had finalized primary issues were encouraged by capital market fund raising in 2016, the highest since 2010. However, the uncertain market environment following demonetization, has put paid to those plans. Matrimony.com, which was planning to raise Rs.5.50 billion via an IPO, has also postponed its plans, citing weak market conditions. Market regulator Sebi’s approval for the issue will expire this month and it will then have to seek fresh consent. It is feared that the note ban would impact GDP growth by 1 percent in 2016-17.

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