Indian firms fundraising dips 10% to ₹11.73 lakh cr in FY23 via IPOs, OFS, preferential issue, and others
2 min read 30 Mar 2023, 06:29 PM ISTDue to extreme volatility fuelled by macroeconomic uncertainties, Indian corporates fundraising through equites and debt instruments declined in FY23 to ₹11.73 lakh crore.
PremiumFundraising by Indian firms through overall markets instruments dipped by 10% to ₹11.73 lakh crore in FY23, compared to ₹12.98 crore raised in FY22. These instruments are -- equity and debt, in India and abroad, covering IPOs, FPOs, OFS (SE), Rights, QIP, InvITs/REITs, preferential issues, Public Debt, Debt Private Placement, Overseas Bonds, ECB, and FCCB.
As per the Prime Database report, in FY23, IPO fundraising halved to ₹52,116 crore compared to an all-time high of ₹1,11,547 crore in FY22. A total of 37 IPOs went public on the main board in FY23 versus 53 IPOs in FY22. On the other hand, SME IPOs recorded strong growth with 125 companies raising ₹2,229 crore as against 70 IPOs in 2021-22 which collected ₹965 crore.
Further, the data revealed that, the offer for sale (OFS) registered a decline in fundraising to ₹11,231 crore in FY23 as against ₹14,530 crore. Of this, the government's divestment accounted for about 85% to ₹9,522 crore of the total amount. The largest OFS was of Axis Bank worth ₹3,876 crore. Notably, OFS accounted for 15% of the year’s public equity markets mobilization.
In regards to qualified institutional placements (QIPs), companies mobilized ₹8,119 crore in FY23 --- down by 72% from ₹28,532 crore accumulated in the previous fiscal.
Under QIPs, the Prime Database report showed that the largest QIP of 2022-23 was from Macrotech Developers raising ₹3,547 crore, accounting for 44% of the total QIP amount. QIPs were dominated by real estate and financial services companies with them accounting for 85% ( ₹6,887 crore) of the overall amount. In addition, there was one QIP of an Infrastructure Investment Trust (InvIT) of National Highways Infra Trust of ₹1,216 crore.
Coming to InvITs/ReITs, the segment witnessed a sharp decline of 92% in fundraising to merely ₹1,166 crore in FY23 versus ₹13,841 crore raised in FY22.
Of the total equity mobilization of ₹76,072 crore, the fresh capital amount was ₹22,985 crore (30%). The rest of ₹53,087 crore were offer for sale.
Also, in the case of divestment, fiscal FY23 was dominated by the mega IPO of LIC which contributed ₹20,557 crore of the total divestment amount of ₹31,050 crore (66%) raised by the Indian government. Public Offers (IPOs of LIC, Paradeep Phosphates, and OFS of Axis Bank (SUUTI), HAL, IRCTC, and ONGC) at ₹30,552 crore (98%) were the most used mode followed by Buyback (GAIL) at ₹498 crore (2%).
Moreover, in the rights issue, the mobilization stood at ₹5,779 crore in FY23 as compared to ₹25,301 crore in FY22, declining by 77%. The largest Rights Issue of 2022-23 was from Capri Global raising ₹1,440 crore, accounting for 25% of the total Rights Issues amount. By number though, the year witnessed 12 companies using the rights route in comparison to 10 companies in 2021-22.
Public bonds also a decline of 30% in FY23 with 32 issues garnering ₹7,444 crore in FY23, as against 7 issues raising ₹10,710 crore last year. The largest issue was from Creditaccess Grameen raising ₹500 crore. Additionally, there was one Public Debt issue of an InvIT (National Highways Infra Trust of ₹1,500 crore), Prime Database report revealed.
