Cos raise Rs 48,952 cr via various instruments in FY16
Despite stock market volatility and a negative return of 9.4 per cent from the Sensex, 2015-16 saw good participation in new equity issuances and companies raised a total of Rs 48,952 crore through various instruments, says a report. “In financial year 2015-16, a total of Rs 48,952 crore was raised through various equity market instruments including initial public offers, qualified institutional placements, follow-on public offers and offers-for-sale,” a report by Centrum Wealth Research said on Friday. This was, however, lower than Rs 58,801 crore raised in fiscal 2015. IPOs garnered Rs 14,772 crore in fiscal 2016, a massive leap from Rs 2,769 crore raised in the previous fiscal.
Money raised through QIPs stood at Rs 14,438 crore, lower than Rs 29,102 crore in the last fiscal, but rights issues raised Rs 8,785 crore, a 30 per cent jump from Rs 6,750 crore in FY15. Despite the turmoil, the BSE IPO index performed relatively better than the benchmark Sensex. In 2015-16 fiscal, the Sensex shed more than 9 per cent, while the BSE IPO index was down only 1.8 per cent.
“While the year was good in terms of quantum of money raised and outperformance of the IPO index, it turned out to be a mixed bag in terms of individual stock performances,” the report titled ‘Performance of New Equity Issues in FY16 ‘ said. Shree Pushkar Chemicals was the biggest gainer with an over 100 per cent return from its offer price, followed by VRL Logistics which gained 81 per cent.