 "Primary mkt was robust amidst favourable investment climate: Eco Survey")
India’s primary markets remained robust during the financial year 2023-2024 (FY24) and facilitated capital formation of Rs 10.9 trillion, the Economic Survey said. The amount approximates 29 per cent of the gross fixed capital formation of private and public corporates during FY23.
Debt issuances dominated fundraising in the last financial year, constituting 78.8 per cent of the total funds raised. Fund mobilisation equity, debt, and hybrid increased by 24.9 per cent, 12.1 per cent, and 513.6 per cent, respectively, in FY24 compared to the previous year.
The number of initial public offers (IPOs) increased by 66 per cent in FY24 from 164 in FY23 to 272 in FY24, while the funds raised grew by 24 per cent from Rs 54,773 crore in FY23 to Rs 67,995 crore in FY24.
The exchanges’ small and medium enterprises (SME) platforms saw heightened activity during FY24 as the number of IPOs/FPOs (Follow-on Public Offers) of SMEs increased by 1.6 times from 125 in FY23 to 196 in FY24. The funds raised through the SME platform rose by more than two and a half times over the previous year, from Rs 2,333 crore in FY23 to Rs 6,095 crore in FY24.
Quoting an E&Y Global IPO trends report, the Economic Survey said Indian exchanges were global leaders in IPO listings.
India’s share consistently rose to 17 per cent in 2023 from 6 per cent and 11 per cent in 2021 and 2022, respectively. The survey further said Qualified Institutional Placements (QIPs) emerged as a critical equity fundraising mechanism for the corporates during FY24.
“Resource mobilisation through rights issues more than doubled to Rs 15,110 crore during FY24, compared to Rs 6,751 crore in the previous year,” the survey said.