Fund mobilisation through primary market equity issues may set a new record in the present financial year ending March 31, if state-run ONGC’s follow-on public offer (FPO) manages to hit the market in Mid-March as planned.
According to the economic survey for FY11 released on Friday, the total amount mobilised as on November 30, 2010-11 through initial public offers (IPOs), FPOs and rights issues stood at Rs 46,701 crore compared with Rs 46,737 crore in 2009-10.
“The year 2010-11 has seen the Indian capital market put the worst behind and move towards strong growth,” the economic survey said.
The latest data available from PRIME Database showed that India Inc had raised about Rs 48,894 crore through 61 equity issues in this financial year till January 31. ONGC’s Rs 12,000 crore issue alone can take that number above Rs 60,000 crore, which would be the highest fund mobilisation through equity issues in a single financial year.
Some of the bigger issues that hit the markets in FY11 were Coal India (Rs 15,199 crore), Power Grid (Rs 7,576 crore), Tata Steel (Rs 3,477 crore), SKS Microfinance (Rs 1,654 crore), MOIL (Rs 1,260 crore), SJVN (Rs 1,079 crore) and Oberoi Realty (Rs 1,029 crore), among others.
The record for fund mobilisation through primary market equity issues was set in FY08, when Indian companies raised Rs 54,511 crore.
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In the present financial year till January 31, 46 new companies (IPOs) were listed on Indian bourses amounting to Rs 32,331.14 as against 39 companies amounting to Rs 24,696 crore in 2009-10.
The mean IPO size for the current financial year is Rs 827 crore as compared to Rs 633 crore in the previous financial year, as per the economic survey.
In the calendar year 2010, the Indian secondary market consolidated its gains made in the previous year, the economic survey said. “Indian markets have been making gains for eight quarters in a row, their longest winning run in at least 20 years,” it said.