IPO mop-ups rose to 48.7%

There was a quantum jump in the amount mobilised through initial public offers (IPOs) in 2004-05 with its share in total capital mobilised rising from 14.7 per cent to 48.7 per cent.

The total amount raised through IPOs during the year was at Rs 13,749 crore against Rs 3,433 crore mobilised during 2003-04, according to the data provided in the Securities and Exchange Board of India's (Sebi) annual report for the year 2004-05.

The total capital raised in 2004-05 through public and rights issues (including offer for sale) stood at Rs 28,256 crore against Rs 23,272 crore in 2003-04, a rise of Rs 4,984 crore or 21.42 per cent over the year.

All the public issues through IPOs were equity issues, while the listed companies mobilised Rs 7,023 crore through equities and Rs 3,867 crore through debt instruments, Sebi said in its report.

"Excluding offer for sale, the total amount mobilised in 2004-05 was Rs 25,056 crore, which was more than three times Rs 8,023 crore in the previous year. This indicates the revival of investors' interest in the primary market," Sebi added.

The number of issues was also higher at 60 in 2004-05 than 57 in 2003-04. Out of 60 issues, 34 were public issues (consisting of 23 IPOs and 11 listed issues) and the remaining 26 were rights issues.

The public issues continued to remain the dominant mode of resource mobilisation through which Rs 24,640 crore was mobilised in 2004-05 as compared to Rs 22, 265 crore in 2003-04, up 10.7 per cent over the year.

However, the share of public issues in the total amount mobilised declined to 87.2 per cent in 2004-05 from 95.7 per cent in 2003-04.

During 2004-05, resource mobilisation through rights issues was Rs 3,616 crore, three and a half times Rs 1,007 crore registered in the previous year.

As there was an exponential growth in the amount mobilised through rights issues, their share in the total amount mobilised jumped to 12.8 per cent in 2004-05 from 4.3 per cent in 2003-04.

There were 11 large issues of Rs 300 crore and above, accounting for 87 per cent of the total resources mobilised in 2004-05.

The highest amount mobilised by a single public issue was that of NTPC at Rs 5,368 crore, accounting for 22 per cent of large issue mobilisation and 19 per cent of the total resource mobilisation during the year under review.

There were seven mega issues above Rs 1,000 crore, which together constituted 80 per cent of the total resource mobilisation.

Sector-wise, the private sector dominated the resource mobilisation efforts in 2004-05 with 60.7 per cent share in the total resource mobilisation, followed by the public sector with 39.3 per cent.

The share of joint sector in 2004-05 was nil. In 2003-04, the shares of private, public and joint sectors were 15.5 per cent, 80.2 per cent and 4.3 per cent, respectively.

Industry-wise, the banking/financial institution sector mobilised the largest amount of resources in 2004-05 "" both in terms of number of issues and amount mobilised.