Companies Raised Rs 68,608 Crore Through Equities In 2015

BENGALURU: Indian firms mopped up over Rs 68,608 crore through the equity market route in 2015, with offer-for sale (OFS) emerging as the most preferred way to mobilize capital for their business needs.

This is 76 per cent higher than Rs 39,067 crore raised through the equity market in 2014.

In the equity space, the funds were mobilized through OFS via the stock exchange mechanism, qualified institutional placement (QIP) and initial public offers (IPO).

Out of the total Rs 68,608 crore raised, fresh capital accounted for only Rs 25,964 crore, with the remaining Rs 42,644 crore coming from offers for sale.

"The year could have been even better but for the deferment of several PSU offerings. The year, of course, fell short of Rs 97,746 crore, the highest amount which has ever been raised (in 2010)," Prime Database Managing Director Pranav Haldea said.

OFS, mostly used for dilution of promoters' holdings, made up 52 pct of the overall funds raised through public issuance of equities. Firms mobilized Rs 35,564 crore through this route, higher than Rs 5,000 crore in 2014.

This was mainly on account of the government's divestment proceeds of Rs 35,291 crore. The largest OFS was that of Coal India, which fetched Rs 22,558 crore followed by Indian Oil (Rs 9,396 crore).

Besides, companies mopped up Rs 19,182 crore through the QIP route, a far cry from Rs 31,684 crore in 2014. The largest QIP of 2015 was from IndusInd Bank raising Rs 4,328 crore.

The best part is the IPO market was in a turnaround mode after four disappointing years. Despite turbulent secondary markets, 21 main-board IPOs came to the market collectively raising Rs 13,602 crore. The highest-ever mobilization through initial share sale plans was in 2010 at Rs 37,535 crore.

In comparison, five IPOs had hit the capital market to garner just Rs 1,201 crore in 2014.

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Source: PTI