Riding on IPO wave, Indian companies have raised Rs 51,288 crore through the equity market route in the current fiscal, up nearly 5 per cent over 2015-16 while bond market slackened, says a report.
The amount raised through Initial Public Offers, Follow- on Public Offers, Offer For Sale and Qualified Institutional Placement was Rs 48,991 crore last fiscal. The money raised in 2016-17 was however far short of Rs 86,710 crore, the highest ever raised in 2009-10, the Prime Database report said.
The bond market, on the other hand, has seen lower amount being raised in the current financial year ending on March 31, with 16 issues netting Rs 29,453 crore, as against 20 which garnered Rs 33,812 crore in 2015-16.
Overall, companies raised Rs 80,741 crore through equity and bond routes put together. The amount raised through IPOs nearly doubled from the previous fiscal as 25 mainboard offers came to the market collectively raising Rs 28,211 crore, said Pranav Haldea, Managing Director, Prime Database.
The report mentioned that as the IPO amounts of CL Educate and Shankara Building Products have not been finalised, their figures have been calculated on basis of lower price band. Response from the public to the mainboard IPOs was very good, the report said.
“While 15 IPOs received mega response of more than 10 times, five other were oversubscribed more than 3 times. The rest five were oversubscribed between 1 and 3 times.”
As far as retail investors are concerned, the current financial year witnessed very good response from them as well.
The highest number of applications was received by Avenue Supermarts at 17.40 lakh followed by BSE (11.32 lakh). Response to IPOs was further buoyed by strong listing performance. Of the 23 IPOs which got listed, 18 gave a return of over 10 per cent, Haldea said.