IPO money up fivefold in FY16

Overall equity capital raising, however, dips 17% over previous fiscal

Capital raising by way of Initial Public Offers (IPO) of equity jumped five times in 2015-16. According to Prime Database, a primary market tracking entity, a total of Rs 14,772 crore was raised this financial year, compared to Rs 3,019 crore in 2014-15l.

Pranav Haldea, managing director, said a major revival was seen in the IPO market after nearly four years, despite turbulence in the secondary markets.

Even IPOs on the small and medium enterprises platform saw good traction, with as many as 50 of these collecting a total of Rs 311 crore, compared to 38 IPOs together raising Rs 250 crore in FY15.

 

The largest was of Interglobe Aviation, which raised for Rs 3,017 crore. The average IPO size was Rs 603 crore.

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Several companies that hit the market had a prior private equity investment. This was true for 14 of the 24 IPOs, says Prime.

However, overall equity raising dipped 17 per cent. In FY16 a total of Rs 48,952 crore was raised through public equity markets, from Rs 58,801 crore in FY15.

Out of the 24 IPOs on the main board, 20 companies had anchor investors, which collectively subscribed to 31 per cent of the total public issue amount. IPOs also witnessed good interest from retail investors. The highest number of retail applications was received by Alkem Laboratories at over 600,000 followed by Dr Lal Pathlabs at around 540,000.