India Inc’s FY16 Fund raising via equities down 17%

Indian firms raised nearly Rs 49,000 crore through the equity market route in the current fiscal ending on March 31, 2016, a slump of 17 per cent year-on-year. A major revival was however witnessed in the IPO market after nearly four dismal years, said Pranav Haldea Managing Director Prime Database. In all, Rs 48,952 crore was mobilised through public equity markets in 2015-16 as compared with Rs 58,801 crore last year, shows a report by Prime. In the equity space, funds were mobilised through Offer- for-Sale (OFS) via the stock exchange mechanism, qualified institutional placement (QIP) and initial public offers (IPO). Of the total, funds worth Rs 19,822 crore were raised through OFS, another Rs 14,772 crore came from IPOs and Rs 14,358 crore via QIPs. Despite turbulent secondary markets, 24 main-board IPOs hit the capital markets, collectively raising Rs 14,461 crore. In comparison, eight initial share-sale plans was launched in the last fiscal to mobilise 2,770 crore. The year again witnessed significant activity in the SME platforms as 50 SME IPOs collected Rs 311 crore. The largest IPO was from Interglobe Aviation, which runs budget carrier IndiGo, for Rs 3,017 crore. The average deal size was high Rs 603 crore. The next financial year looks promising as there are 25 companies holding Sebi’s approval to raise over Rs 12,500 crore through IPO and another six firms are awaiting the regulator’s nod to mobilise Rs 3,0000 crore via initial share-sale programme, Haldea said.