KOLKATA: Equity mobilisation during the calendar year 2007 was the highest ever in the Indian capital market’s history. Public equity offerings during the year mopped up about Rs 45,137 crore compared to Rs 24,679 crore mobilised in the previous year.
According to Prime Database, a Delhi-based research firm tracking the primary market, the 83% growth in mobilisation through public equity issues, comprising both initial public offerings (IPOs) and follow-on public offerings (FPOs) can be attributed to the bullish secondary market for most part of the year coupled with high returns. The mobilisation could have been higher, but for the lack of PSU divestments, the research firm added.
Mop up through follow-on public offerings (FPOs) by six listed companies was up at Rs 10,928 crore over 19 such issues, which raised Rs 4,817 crore last year. IPOs dominated the year with 101 issues collectively mobilising Rs 34,209 crore — up by 72% from Rs 19,862 crore in 2006.
On the basis of number of issues also, the performance has been positive. Compared to 92 public equity issues in the previous year, year 2007 recorded 107 public issues. Real estate companies, led by DLF, mobilised about 33% of the total mop up, followed by banking, power and telecom. The year witnessed the largest-ever IPO from DLF for Rs 9187.50 crore.
Moreover, the study suggests bookbuilding issues continued to dominate. Of the 107 issues, about 93 issues collectively mobilised over 99% of the year’s amount. Fresh capital was 81% higher at Rs 43,060 crore (Rs 23,737 crore).
Most significantly, the year, according to Mr Haldea, was again characterised by good quality issues. Strict entry norms of Sebi and stock exchanges, detailed disclosure norms, combined with compulsory participation of QIBs, have played an important role in improving the quality of issues.
“Little wonder, almost all IPOs gave impressive returns. Of the 93 IPOs listed till date, as many as 85 offered an exit at a premium on the listing date with gains exceeding 50% in 38 issues and exceeding 10% in 74 issues. In 16 cases, the gains were in excess of 100%,” the study stated.
The year also witnessed a complete demise of regional stock exchanges with all IPOs opting for listing on the Bombay Stock Exchange and the National Stock Exchange. Public debt issues mobilised about Rs 1,000 crore in 2007.
According to Prime Database, a Delhi-based research firm tracking the primary market, the 83% growth in mobilisation through public equity issues, comprising both initial public offerings (IPOs) and follow-on public offerings (FPOs) can be attributed to the bullish secondary market for most part of the year coupled with high returns. The mobilisation could have been higher, but for the lack of PSU divestments, the research firm added.
Mop up through follow-on public offerings (FPOs) by six listed companies was up at Rs 10,928 crore over 19 such issues, which raised Rs 4,817 crore last year. IPOs dominated the year with 101 issues collectively mobilising Rs 34,209 crore — up by 72% from Rs 19,862 crore in 2006.
On the basis of number of issues also, the performance has been positive. Compared to 92 public equity issues in the previous year, year 2007 recorded 107 public issues. Real estate companies, led by DLF, mobilised about 33% of the total mop up, followed by banking, power and telecom. The year witnessed the largest-ever IPO from DLF for Rs 9187.50 crore.
Moreover, the study suggests bookbuilding issues continued to dominate. Of the 107 issues, about 93 issues collectively mobilised over 99% of the year’s amount. Fresh capital was 81% higher at Rs 43,060 crore (Rs 23,737 crore).
Most significantly, the year, according to Mr Haldea, was again characterised by good quality issues. Strict entry norms of Sebi and stock exchanges, detailed disclosure norms, combined with compulsory participation of QIBs, have played an important role in improving the quality of issues.
“Little wonder, almost all IPOs gave impressive returns. Of the 93 IPOs listed till date, as many as 85 offered an exit at a premium on the listing date with gains exceeding 50% in 38 issues and exceeding 10% in 74 issues. In 16 cases, the gains were in excess of 100%,” the study stated.
The year also witnessed a complete demise of regional stock exchanges with all IPOs opting for listing on the Bombay Stock Exchange and the National Stock Exchange. Public debt issues mobilised about Rs 1,000 crore in 2007.
No comments:
Post a Comment