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Companies raise all-time high Rs 1.77 trn via equity market in FY18

During 2016-17, Rs 511.2 billion was raised through equity market route

private equity

Press Trust of India New Delhi
Indian companies raised Rs 1771.16 billion during 2017-18 through the equity market route, the highest amount ever raised in a financial year, says a report.
IPOs and QIPs dominated the fund mobilisation route in 2017-18, the report by PRIME Database said today.
"2017-18 witnessed raising of Rs 1771.16 billion through the public equity markets, 3.46 times that was raised in the preceding year," said Pranav Haldea, Managing Director, PRIME Database.
During 2016-17, Rs 511.2 billion was raised through equity market route.
The previous highest amount raised through equity market was Rs 867.10 billion in 2009-10, the report said.
Haldea said 2017-18 was the best year ever for initial public offer (IPO) market by far, the previous high being in 2007-08 when Rs 413.23 billion was raised.
The report further said 45 mainboard IPOs came to the market collectively raising Rs 821.09 billion.
The overall response from the public to the mainboard IPOs of the year was also very good, it said, adding 17 IPOs received mega response of more than 10 times.
Final response data of 6 IPOs is not yet available, the report noted. The amounts of mainboard IPOs of Karda Constructions, HAL, Sandhar Technologies, MIDHANI, ICICI Securities and Lemon Tree Hotels have been calculated on the basis of lower price band.
As far as retail investors are concerned, the year witnessed very good response from them as well.
Haldea said response to IPOs was further buoyed by strong listing performance. Of the 38 IPOs which got listed, 17 gave a return of over 10 per cent (based on closing price on listing date).
The year also witnessed significant activity on the SME platform. There were as many as 155 SME IPOs, the highest ever, which collected a total of Rs 22.47 billion.
Offer for sale through stock exchanges (OFS), which is for dilution of promoters' holdings, saw an increase from Rs 83.9 billion raised last financial year to Rs 184.38 billion raised in 2017-18.
India Power Corp, Sona Koyo Steering Systems and Inox Wind OFS amounts are not finalised yet, the report said.
Already-listed companies found QIP route very attractive, with 52 firms mobilising Rs 623.58 billion, the highest ever. MEP Infrastructure QIP amount was not finalised, it said.
Only two companies used the IPP route, mobilising Rs 46.68 billion.
Of the total amount of Rs 1771.16 billion, the amount raised through fresh capital was only Rs 912.05 billion, the remaining Rs 859.11 billion being offer for sale, it said.
In divestment space, 2017-18 was the best year ever with Rs 989.65 billion being raised by the government.
In the bond market, eight issues raised Rs 48.61 billion, lower than 16 issues raising Rs 295.47 billion in 2016-17.
According to Haldea, 2018-19 is likely to see more volatility in the secondary market which shall affect fund raising plans of companies as well.

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First Published: Mar 29 2018 | 5:16 PM IST

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