Lull in fresh fundraising despite IPO boom

Offers for sale accounted for 84% of the Rs 42,000 cr raised via IPOs so far in FY18

The record fund-raising through initial public offerings (IPOs) has not bumped up fresh capital formation in the country significantly. The reason? More than four-fifths of the amount has been garnered through offer for sales (OFS).

Eighty four per cent of the Rs 42,000 crore raised in financial year 2017-18 has come in via OFS, the highest for any financial year, data collated from Prime Database shows. The figures are set to balloon further as big-ticket offerings from insurers New India Assurance and HDFC Life will comprise share sales by existing promoters.