Dec 2012, the kindest month for equity issues

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Ankit Doshi: Mumbai, Dec 22 2012, 00:51 IST

first eight-nine months of the calendar year and opportunities to raise capital were limited. However, once the secondary market sentiment improved due to fiscal reforms, many companies rushed to capital markets to take advantage,” said Dipen Shah, head of private client group research, Kotak Securities.

According to PRIME Database, December 2011 did not see any public issues. Companies raised a little over R1,500 crore through five issues in December 2010 and R3,500 crore through three issues in December 2009. There was no equity fund-raising in December 2008 as the global financial crisis roiled the markets.

Several issues are in the pipeline for the next two-three months. Experts feel the fund-raising party will continue as many big institutions, especially FIIs, have been re-allocating funds to Indian equities on hopes the government will continue with reforms.

“If the sentiment deteriorates, the public issue pipeline could be disturbed. We expect the secondary market mood to sustain,” said Prithvi Haldea, CMD, PRIME Database.

According to Bank of America-Merrill Lynch’s December fund manager survey, confidence in global economy will extend to 2013. It said global markets would strengthen next year as fiscal cliff fears ease. UBS and JP Morgan too are bullish on India, expecting markets to outperform next year.

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