India Inc mops up record Rs 22,639 crore via IPOs

As many as 87 companies mobilised record Rs 22,639 crore from capital markets through equity floats in the first 11 months of the current financial year compared with Rs 21,432 crore raised during the full-year period in 2004-05 by 29 companies.

The floats include initial public offers (IPOs) as well as follow-on offers. Suzlon Energy tops the list of companies that raised money through IPOs.

The company raised Rs 1,496 crore through its IPO in September 2005. Over all, however, ICICI Bank tops the list of floats mopping up Rs 5,750 crore.

Infrastructure Development Finance Company (IDFC) comes second on the IPO list garnering Rs 1,372 crore, followed by Punj Lloyd (Rs 642 crore), HT Media (Rs 408 crore) and Mahindra & Mahindra Financial Services (Rs 400 crore).

The banking sector tops the public offer chart with eight banks collectively mobilising almost 50 per cent, or Rs 11,313 crore, of the total float in 2005-06.

Apart from ICICI Bank's big bang float, Bank of Baroda (Rs 1,633 crore), Oriental Bank of Commerce (Rs 1,450 crore), Allahabad Bank (Rs 820 crore), Andhra Bank (Rs 765 crore), Union Bank of India (Rs 495 crore) and Syndicate Bank (Rs 250 crore) are the other banks in the list.

These were all follow-on offers. Gujarat State Petronet (Rs 373 crore), Jagran Prakashan (Rs 369 crore), Gitanjali Gems (Rs 332 crore), Yes Bank (Rs 315 crore), J K Cement (Rs 296 crore), GVK Power & Infrastructure (Rs 257 crore), Entertainment Network (Rs 214 crore), B L Kashyap & Sons (Rs 206 crore) and Gujarat Industries Power (Rs 200 crore) all cashed the ongoing the equity boom.

Out of the total issue size of Rs 22,639 crore, almost 60 per cent, or Rs 13,430 crore, was mobilised in the last three months by 36 companies. In December, 10 companies raised Rs 6,942 crore. While in January 2006, as many as 14 firms raised Rs 3,835 crore, in February the figure stood at Rs 2,654 crore (14 companies).

Earlier, in April 2005 seven companies mobilised Rs 2,597 crore, five companies raised Rs 1,826 crore in July 2005 and six companies mobilised Rs 1,628 crore in September. The lowest mobilisation of fund from the primary market was in May when four companies mobilised Rs 54 crore.

As per PRIME Database, 145 companies raised a whopping Rs 61,891 crore from the markets in last three financial years compared with Rs 40,684 crore collected by 5,322 companies in the last 14 financial years beginning from 1989-90 to 2002-03.