Funds mobilised by companies from public equity issues surged sevenfold to about Rs 5,450 crore in April-June, driven by a sharp increase in offers for sale to meet Sebi's deadline on minimum public shareholdings.
Of the funds raised, Rs 4,507 crore came from the offer-for-sale (OFS) route, while Rs 942 crore was garnered through initial public offerings, according to a report by Prime Database. In the April-June quarter of 2012, firms had mopped up Rs 718 crore via public equity issues.
'The huge increase in funds raised through the OFS route was due to many companies having to meet with Sebi's deadline for minimum public shareholding,' according to the report.
During the first quarter of 2013-14, there were four IPOs and 51 OFS, compared with five initial share sales and three OFS a year earlier.
The amount raised through IPOs highlights the sorry state of fund raising in the country, Prime Database said, adding that the outlook for the primary market is optimistic as many companies are expected to come out with public offerings.
'The future of the primary market, however, is now showing some promise,' Prime Database noted.
IPOs are planned by Ortel Communications (Rs 1,000 crore), IFCI Factors (Rs 750 crore) and Rs 700 crore each from Bharat Business Channel and Inox Wind.Offerings may come from some of the 21 companies that have approval from the Securities and Exchange Board of India and 12 firms that are waiting for the go-ahead from the market regulator.Lack of disinvestment by the government affected the primary market.
Of the funds raised, Rs 4,507 crore came from the offer-for-sale (OFS) route, while Rs 942 crore was garnered through initial public offerings, according to a report by Prime Database. In the April-June quarter of 2012, firms had mopped up Rs 718 crore via public equity issues.
'The huge increase in funds raised through the OFS route was due to many companies having to meet with Sebi's deadline for minimum public shareholding,' according to the report.
During the first quarter of 2013-14, there were four IPOs and 51 OFS, compared with five initial share sales and three OFS a year earlier.
The amount raised through IPOs highlights the sorry state of fund raising in the country, Prime Database said, adding that the outlook for the primary market is optimistic as many companies are expected to come out with public offerings.
'The future of the primary market, however, is now showing some promise,' Prime Database noted.
IPOs are planned by Ortel Communications (Rs 1,000 crore), IFCI Factors (Rs 750 crore) and Rs 700 crore each from Bharat Business Channel and Inox Wind.Offerings may come from some of the 21 companies that have approval from the Securities and Exchange Board of India and 12 firms that are waiting for the go-ahead from the market regulator.Lack of disinvestment by the government affected the primary market.