Equity markets may have risen smartly in 2014, thanks to the new government at the Centre, but equity issuances have remained lacklustre.
The amount of equity issuances slowed to $2.6 billion in the December quarter, down from $2.8 billion in September and $3.2 billion in the June quarter, data collated by Thomson Reuters shows.
Data compiled by Prime Database shows that the amount raised through initial public offerings last year was the lowest in the past decade; although it must be noted here that primary markets typically pick up with a lag.
But even follow-on offers, a route some companies used smartly to tap the improvement in sentiment, rose by less than 15% in 2014, with the number of companies tapping the route dropping by 23.5%.
Some of the sectors which require money from the primary market, such as power, real estate and infrastructure, continue to be squeezed by policy hurdles and a huge debt pile.
As a result, they are not getting the desired valuation and investors are not ready to put in money unless prospects improve, say investment bankers.
Besides, a big disappointment for the primary market has been lack of divestments, which may be bunched up in the first quarter of this year.