Top-10 IPOs have only Gujarati promoters

AHMEDABAD: Gujaratis are the biggest money spinners on the bourses. An analysis of top ten IPO grossers reveals that investors have maximum faith in companies promoted by Gujarati entrepreneurs.
Among the top ten IPOs in terms of money pledges, five IPOs belong to companies promoted by Gujarati entrepreneurs. The rest are public sector companies and a Tata group company which is promoted by Gujarati-speaking community.
Reliance Power, a group company of Anil Ambani, tops the chart as the IPO had mopped up an astronomical Rs 6.31 lakh crore. RPL is followed by Mundra Port and SEZ (Gautam Adani), Reliance Petroleum (Mukesh Ambani), Suzlon Energy (Tulsi Tanti) and the latest offering from Adani Power (Gautam Adani).
The IPO of Adani Power that closed on Friday is estimated to have collected around Rs 63,000 crore. The IPO was over-subscribed 21 times in a rather uncertain market where no promoter has dared to tap the primary market since the global meltdown.
"Gujaratis are savvy investors and largest wealth creators. Investors have confidence in their execution of large-sized projects. The promoters have constantly rewarded share-holders which has given them credibility," said Chinubhai Shah, president of Gujarat Investors and Shareholders Association.
"Gujaratis have a rare business acumen which the market banks upon heavily. Investors are willing to back their ventures with their hard earned money," said VK Sharma, head, Anagram Securities.
What is interesting is seven of the top 10 companies are from energy segment power and petroleum companies.