IPO fund mop-up declines 26% to Rs 26,300 crore during April-Sept

Fundraising through mainboard IPOs declined 26 per cent to Rs 26,300 crore in the first half of the fiscal, even as the number of issues more than doubled to 31.

In the first half of FY23, the amount raised via Initial Public Offerings (IPOs) stood at Rs 35,456 crore through 14 issues, according to data collected by Prime Database.

However, excluding the mega LIC issue in May 2022, fund mobilisation this year jumped 76 per cent year-on-year.

According to Pranav Haldea, Managing Director of the portal, fundraise via equities rose 69 per cent to Rs 73,747 crore in the April to September period, from Rs 43,694 crore in the first half of FY23.

This includes the money raised through the SME issue platforms, InvITs, REITs, OFS, QIP and public debt issues, he said.

Including SME issues, the money raised stood at Rs 29,032 crore in the reporting year, down from Rs 36,594 crore in H1, FY23.

Offer for Sale (OFS) amounts, including InVITs and REITs, plunged to Rs 1,446 crore in the period under review from Rs 15,541 crore in the year-ago period, while QIPs plummeted to a quarter of what was raised last year to Rs 5,238 crore from Rs 20,748 crore, the data showed.

InVITs and REITs were the lowest at Rs 416 crore from Rs 8,426 crore, taking the total equity raising to Rs 43,694 crore in H1FY24 from Rs 73,747 crore in the year-ago period.

This fiscal saw Rs 3,374 crore being raised from public issue of debt, down from Rs 10,992 crore, taking the total fund raising to Rs 47,068 crore, about half of what the market had mopped up during the first half of the last fiscal at Rs 84,738 crore.

Among the mainboard issues, the largest was from Mankind Pharma (Rs 4,326 crore), followed by JSW Infrastructure (Rs 2,800 crore) and R R Kabel (Rs 1,964 crore).

The smallest IPO was from Plaza Wires, which raised just Rs 67 crore.

The average size of IPOs was Rs 848 crore and 21 of 31 issues came out in August and September.

Though multiple sectors tapped the IPO market, one key sector that was missing was BFSI with just Rs 1,525 crore being raised by companies from this sector, which had a 61 per cent share in the year-ago period, as per the report.

Besides, there was just one issue -- Yatra -- from the new-age technology sector.

However, Haldea sees a strong IPO pipeline in the October-March period with 28 companies -- which have already received Sebi's approval -- proposing to raise Rs 38,000 crore.

Another 41, which are awaiting the regulator's go-ahead, are looking to raise about Rs 44,000 crore in the second half of this fiscal, he added.