India Inc raised Rs 5,000 crore in first half of FY16

Mumbai: The total funds mobilised by India Inc has grown five fold in the first half of FY16 as compared to the same period last year. According to the data provided by Prime Database, a primary market tracking firm, companies raised Rs 4,950 crore through the initial public offering (IPO) and another Rs 12,916 crore was raised through the offer for sale (OFS) route. With the sentiments in the secondary markets picking up momentum, the IPO pipeline is also looking quite robust with 19 companies with the necessary Sebi approval planning to hit the market.

They are expected to raise a total of Rs 11,545 crore while another 17 companies intending to raise Rs 6,795 crore have filed their offer documents with capital market regulator.

During the first half of this fiscal, the market witnessed 39 IPOs compared to 25 in the corresponding period of last year. Out of that, there were 12 main board IPOs, which mobilised Rs 4,777 crore accounting for 97 per cent of the amount raised with the balance 27 being SME IPOs. They together raised Rs 173 crore.

According to  Prime Database MD Pranav Haldea, the higher fund raising through the OFS route was mainly due to the government’s disinvestments programme. The state owned Indian Oil Corporation alone raised Rs 9,396 crore through OFS.  

“It is extremely positive to see a greater degree of action from the government on the divestment front in the first half. The government raised much smaller amounts during the past years in the same period. This is the highest amount ever raised by the government through disinvestment,” Mr Haldea said.