The amount of funds raised by corporate India from the domestic primary market in 2015 is highest in the last five years with Offers for Sale (OFS) and Qualified Instit-utional Placements (QIP) emerging as the most popular route to mobilise funds.
During the current calendar, companies have raised a total of Rs 68,608 crore through equity issuances, which is 76 per cent higher than the previous year and the highest since 2010.
According to Pranav Haldea, managing director, Prime Database, the year 2015 could have been even better but for the deferment of several PSU offerings.
“A major revival was witnessed in the IPO market after four disappointing years. Despite turbulent secondary markets, 21 main-board IPOs (previous year five IPOs for Rs 1,201 crore) came to the market collectively raising Rs 13,602 crore. The highest-ever mobilisation through IPOs was in 2010 at Rs 37,535 crore,” he added.
Another interesting highlight about the IPOs in 2015 was the overwhelming response that they received from investors, which proved that there is always enough appetite in the market to absorb quality offers that are attractively priced.
According to data provided by Prime Database, seven companies received mega respose for their IPOs. While the public offer from VRL Logistics was subscribed 53 times, Alkem Laboratories was subscribed 31 times followed by Power Mech Projects and Dr Lal Pathlabs which were subscribed 26 times and 24 times respectively.
Even the participation from retail investors in the primary market was quite encouraging.
The public offer from Alkem Laboratories received the highest application from retail investors at 6.06 lakhs followed by Dr Lal Pathlabs at 5.53 lakh, VRL Logistics (5.39 lakhs) Inox Winds (3.99 lakhs) and Syngene International (3.20 lakhs).
According to Mr Haldea, 2016 looks even more promising. “Already at the beginning of the year, there are 20 companies holding Sebi approval wanting to raise Rs 7,315 crore and another 11 companies wanting to raise Rs 5,445 crore are awaiting Sebi approval.”
