The total money raised by Indian companies in the year 2014-15 stood at Rs 58,801 crore, double than last year and highest since 2010-11 when the number stood at Rs 72,143 crore.
It might look that businesses in India are back in the market to raise money and expand businesses but more than a cursory glance unravels a picture that still casts a few shadows. Initial Public Offerings (IPOs), in 2014-15 stood at a mere Rs 2,769 crore. Although this year has seen a few IPOs and last year a paltry Rs 919 crore was raised through primary markets.
The second-lowest fundraising through IPOs in over a decade was in 2008-09 (Rs 2,034 crore) when the world was hammered by the global financial meltdown.
Pranav Haldea, Managing Director, PRIME Database, said, "Despite a stable government coming into power and the resultant buoyant secondary market, only 8 main-board IPOs came to the market collectively raising a meager Rs 2,769 crore (previous year 1 IPO for Rs 919 crore). This included only one Rs. 1,000 crore plus IPO (Inox Wind-Rs1,020 crore)."
This compared to 2007-08, the year that saw the highest-ever mobilization at Rs 41,323 crore.
Source: Prime Database
The cobwebs on the doors Indian IPO market are alarming as in the past six months over 100 companies let their SEBI approvals to raise Rs 48,150 crore (collectively), lapse.
Haldea said, "In addition, 58 companies which had filed their offer documents with SEBI (since 1st April 2009) to collectively raise Rs 17,685 crore withdrew their offer documents. If these 161 companies had been able to hit the market, an additional huge Rs 65,835 crore, almost the same as the Rs 73,909 crore which was actually raised in the 6-year period, would have been raised."
Qualified Institutional Placements (QIPs) have been a buzzword with India Inc last year with a total fund raising of Rs 28,429 crore as against Rs 9,402 crore, in 2013-14.
Source: Prime Database
Prime Database said, "These offers (QIPs) accounted for as much as 48% of the total amount mobilized during the financial year.The largest QIP of 2014-15 was that of Reliance Communications in June 2014 raising Rs 4,808 crore.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}