Public equity fundraising increased by a huge 142 pc to Rs 1.86 lakh crore
Overall public equity fundraising increased by a huge 142 per cent to Rs 1.86 lakh crore in 2023-24 from Rs 76,911 crore in 2022-23
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New Delhi, March 26: Overall public equity fundraising increased by a huge 142 per cent to Rs 1.86 lakh crore in 2023-24 from Rs 76,911 crore in 2022-23.
Pranav Haldea, Managing Director, Prime Database, said 76 Indian corporates raised Rs 61,915 crore through main board IPOs in financial year 2023-24, 19 per cent higher than the Rs 52,116 crore mobilised by 37 IPOs in 2022-23.
The largest IPO in 2023-24 was from Mankind Pharma (Rs 4,326 crore). This was followed by Tata Technologies (Rs 3,043 crore) and JSW Infrastructure (Rs 2,800 crore).
The overall response from the public, according to Prime Database was excellent. Of the 75 IPOs for which response data is available, 54 IPOs received a mega response of more than 10 times (of which 22 IPOs more than 50 times) while 11 IPOs were oversubscribed by more than 3 times. The balance 10 IPOs were oversubscribed between 1 to 3 times.
51 of the 75 IPOs are trading above the issue price, as per the closing price of March 21, with an average return of 65 per cent.
According to Pranav Haldea, IPO response was further buoyed by strong listing performance. Average listing gain (based on closing price on listing date) increased to 29 per cent, in comparison to 9 per cent in 2022-23. Of the 75 IPOs, 48 gave a return of over 10 per cent. Vibhor Steel gave a stupendous return of 193 per cent followed BLS E-Services (175 per cent) and Tata Technologies (163 per cent).
2023-24 saw 96 companies filing their offer document with SEBI for approval (in comparison to 75 in 2022-23). On the other hand, 2023-24 also saw 37 companies looking to raise nearly Rs 59,000 crore letting their approval lapse, two companies looking to raise Rs 1,000 crore withdrawing their offer document and SEBI returning the offer document of a further five companies looking to raise Rs 2,500 crore.
The pipeline continues to remain strong. Nineteen companies proposing to raise nearly Rs 25,000 crore are presently holding SEBI approval while another 37 companies looking to raise about ₹45,000 crore are awaiting SEBI approval.
According to Haldea, despite the upcoming general elections, the next couple of months should still see a few IPOs being launched.
QIPs also saw a huge jump with 55 companies mobilising Rs 68,933 crore through QIPs in 2023-24, nearly 7 times higher than Rs 9,019 crore raised in 2022-23. The largest QIP was from Bajaj Finance raising Rs 8,800 crore, accounting for 13 per cent of the total QIP amount. QIPs were dominated by Banking and Financial Services companies with them accounting for 58 per cent (Rs 40,020 crore) of the overall amount.
Of the total equity mobilisation of Rs 1,86,108 crore, the fresh capital amount was Rs 1,25,267 crore (67 per cent in comparison to 36 per cent last year), the remaining Rs 60,840 crore being offered for sale.
