'India Inc raised USD 3.8 bn through 19 IPOs in Jan-Jun this year'

Corporate India raised USD 3.8 billion through 19 IPOs in the first half of this year, largely driven by stable equity equity markets, says a report.

According to Grant Thornton, increased activity in the IPO space is expected as the IPO ecosystem is evolving at a rapid pace and several companies are looking to list this year.

As per the report, USD 3.8 billion was raised across 19 IPOs during the first six month of this year with values increasing by nearly three fold over the corresponding period last year (January-June 2017).

The biggest public issue was floated by Bandhan Bank, which raised USD 699 million followed by Hindustan Aeronautics (USD 661 million) and ICICI Securities Ltd (USD 618 million).

The top sectors that raised IPOs in the first half of this year were manufacturing, with seven companies raising USD 0.6 billion, followed by banking, with three companies raising USD 1.6 billion.

The report further noted that 25 Indian firms have mobilised around USD 2 billion by issuing shares to institutional investors during first half of this year, a 23 per cent drop from January-June 2017.

The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

Notable big ticket QIPs witnessed this year included Idea Cellular (USD 547 million), Housing Development Finance Corporation Limited (USD 296 million), Jindal Steel & Power Limited (USD 188 million) and L&T Finance Holdings Limited (USD 156 million), the report said.

Sector-wise, banking and telecom sector companies raised 60 per cent of total capital through this route on the back of four big ticket transactions, it added.