India Inc raises Rs2 trillion in decade via IPOs

India Inc raises Rs2 trillion in decade via IPOs

New Delhi: The decade gone by saw the Indian companies mopping up a staggering Rs2 trillion through 385 public issues, riding high on blockbuster IPOs like Reliance Power and Coal India, says a report.

In a review from 2001-2010 on the Indian public issue market, the Indian corporates have raised about Rs2,09,400 crore, SMC Global Securities Limited said in a report.

“It was the decade when the Indian capital markets and Indian economy came into the radar of the global observers. During the period, the Indian public issue market has seen quite fascinating phases," SMC Global strategist & head of research Jagannadham Thunuguntla said.

The report noted that the Indian capital market saw only nine public issues during 2001-2003, through which about Rs2,500 crore was raised, as the local market was grappled with negative sentiment ranging from the dotcom bubble burst in the US economy to the Ketan Parekh (stock scam) episode.

However, this was the time when the country saw the high-profile issues including Bharti Airtel, Maruti Suzuki and i-flex.

In fact, the carmaker Maruti Suzuki’s initial public offer (IPO) became iconic in the public issue market history, which in a way paved way for disinvestment prospects in the country, the report added.

Party for the Indian IPO market started in 2004, when global investors and FIIs started investing billions of dollars into Indian markets as well as in Indian IPOs. The period from 2004-2007 witnessed 246 public issues, managing to raise about Rs1,01,000 crore.

Highlights of the period were--ONGC FPO, ICICI Bank FPO, NTPC IPO, TCS IPO, the report said.

Going forward, from 2008-2009, the market welcomed the mega IPO of Reliance Power. This public offer attracted heavy investors participation, especially, from the retail bidders.

However, later in 2008, the world witnessed unprecedented events of collapse of some of the iconic names in the US economy, like the Lehman Brothers crisis, which led to the crash of the public issue market in 2008.

During 2008-2009, there were 60 public issues by which about Rs34,306 crore were garnered. The major issues during this period were -- Reliance Power IPO, NHPC IPO, Oil India IPO and REC IPO.

In 2010 alone, about 70 public issues saw light of the day, raising Rs71,000 crore. Interestingly, calendar year 2010 also saw the highest ever public issuance volume than any other year.

The year had also seen aggressive disinvestment thrust from the government, helping the overall robustness of the public issue market.

The list of heavyweight IPOs include, Coal India IPO, MOIL IPO, SJVNL IPO, NTPC FPO, NMDC FPO.

A study by SMC noted that the top 10 public issues in 10 years including those of CIL and Reliance Power, have collected an aggregate of about Rs93,800 crore.