India Inc's capital mobilisation through initial public offering has hit rock bottom as the total amount raised via this route in 2008 aggregated to $4,509 million, the lowest in the last three years, says a report.
Capital mobilisation through IPOs witnessed a fall both in terms of volume and value as only 44 transactions worth $4,508.85 million were announced, global consultancy firm Grant Thornton said. Way back in 2005, however, there were as many as 64 such deals with an announced value of $5,521.50, it added.
The total fund mopped up through IPO in 2008 was $4.51 billion, 18.34 per cent lower than the amount raised in 2005.
Compared with 2007, fund raising has dipped by 54.55 per cent. Fund raising activity through IPO reached its peak in 2007, when a whopping $9,920.65 million was garnered.
Though there was a fall in both value as well as volume terms but the year 2008 saw several large IPOs across the board including Reliance Power's $2.56 billion issue - the largest public issue of 2008, Grant Thornton added.
The other big IPOs in the year came from Rural Electrification Corp, IRB infrastructure developers and KSK energy ventures each raising $410 million, $236 million and $208 million, respectively.