New Delhi: India Inc has mobilised the highest ever Rs25,000 crore through equity offerings, including initial public offers and follow-on issues, in fiscal 2006-07, a latest study showed.
The total mobilisation during the fiscal is pegged at Rs24,993 crore, which is higher by 5% than preceding year’s Rs23,676 crore, according to Prime, a database in primary capital market.
“The mobilisation in the year could have been higher but for the two secondary market crashes during the year which forced temporary shelving of IPOs as also lack of divestments. Significantly, the year witnessed the largest equity IPO of Cairn India (Rs5,789 crore),” said Prithvi Haldea Managing Director of PRIME.
As many as 76 IPOs collectively raised Rs23,706 crore or 95% of the total amount in FY07 compared to same number of IPOs floated a year-ago mobilising just Rs10,808 crore.
The response from the public to the equity issues of the year was quite good, Haldea said adding, the main reason for the good performance of the primary market was the buoyant secondary market almost through out the year, the economic resurgence and the stable political climate helped the scenario.
However, due to the secondary market crashes as many as eight IPOs (all small) failed to evoke the requisite response and had to be refunded, he added.
The major IPOs during the year were from Cairn India (Rs5,789 crore), Reliance Petroleum (Rs2,700 crore) and Idea Cellular (Rs2,444 crore).