'Cos may raise Rs 2 lakh cr from mkts in next 3 yrs'

Companies are expected to raise up to Rs 2 lakh crore from the primary markets over the next three years, leading brokerage and investment banking firm ICICI Securities said today.

"Over the next three years, we will see a lot of companies coming out (public issues)...There will be additional papers in the market, Rs 1.5-2 lakh crore in the next three years," ICICI Securities CEO and Managing Director Madhabi Puri-Buch said here on the sidelines of a CII event.

According to Buch, nearly $20 billion will be raised from the initial public offer market this fiscal only.

We expect that Indian companies will "raise around $20 billion from the IPO market this fiscal", she said, adding that of this around Rs 40,000 crore would be from public sector and an equal amount from private companies.

She further said that many firms, especially small ones, may prefer the private equity (PE) route for raising funds. "Smaller companies will prefer private equity. Liquidity is available in the market for Indian corporates."

When asked whether the new public holding rule will dampen the primary market, Buch said "I would not say it would prove a dampener for the IPO market."

Last week, the government made it mandatory that all the listed firms should ensure a minimum 25 per cent public holding. Analysts said following the new norm, public offers would swarm the market.

Buch added that under the new rule "companies may prefer to go for private equity investors in the initial stage".