Public Issue declined 22% in H1FY12

by khalid on 13/10/2011 · 0 comments

In the first half of this fiscal year the Indian companies raised rupees 9582 Cr through public issues.  It is a net decline of 22 per cent as compared to the same period during last fiscal year. In H1 of last fiscal year the total mobilization was rupees 12280 Cr which is 2698 Cr lower than this year collection of 9582.

When we compare in terms of number of issues it was more or less same as last fiscal year. The first half of FY 2012 witnessed 31public issues in the period April to September of 2011 against 32 issues in the same period last year.Out of Rs 9582 Cr raised Rs 5004 Cr through 30 IPO’s (initial public offer)& Rs 4578 Cr through 1 FPO. During this period the biggest disappointment in the primary market was lack of divestment of state owned companies. The pipeline of PSU/divestment offerings continues to be large as nothing has been materialised in the first half of the financial year.

The average size deal of the issue during this period was Rs 309 Cr against Rs 353 Cr in H1 FY 11. In FY 2011-12 there were only 2 issues more than Rs 1000 Cr and 11 issues were less than Rupees 50 Cr. The smallest IPO was of Rs 23.25 Cr. The issues were majorly dominated by Banking & Financial services companies raising Rs 7621 Cr followed by electronics, Consumer &  Media with Rs 324 Cr and electronics and electric equipment with Rs 320 Cr. out of 31 issues 30 were issued through book building process.

“Bell the bull says: There are around 109 companies waiting for approvals either with SEBI or waiting for the markets to improve.”

 

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