The Offer For Sale (OFS) route accounted for 52.8% or more than half of the total funds raised through the public equity markets in 2013.
Eighty four OFS raised a total of Rs 23,963 crore in 2013, according to a note from data service provider Prime Database.
“OFS were in highlight…especially in the April-June quarter with companies having to meet the 3rd June 2013 MPS (Minimum Public Shareholding) compliance deadline given by SEBI. Another new instrument allowed by SEBI, IPP, primarily for the same purpose saw 12 companies raising Rs 4,823 crore,” it said.
Meanwhile, the market for initial public offers remained tepid. Initial public offers are an exercise through which companies and/or existing shareholders sell a stake in a private company to the public.
“…the unstable political/economic climate in the country, coupled with a volatile secondary market, almost through the year resulted in a continuing lull in IPOs; only three main-board IPOs came to the market, collectively raising a meagre Rs 1,284 crore, more than 70% of which came from the Rs 919 crore IPO of Just Dial, the others being Repco Home Finance and V-Mart Retail. This was in comparison to 11 main-board IPOs in the preceding year mobilising Rs.6,835 crore ,” it said.
