A record Rs 45,137 crore was mobilised from the Indian primary market through equity issues, initial public offerings (IPOs) and follow-on public offerings (FPOs) in 2007. This is 83% higher than the previous year’s figure of Rs 24,679 crore, Prithvi Haldea, CMD, Prime Database said.
In a statement issued on Wednesday, Haldea said that the IPOs dominated the resoure mobilisation process with 101 issues garnering Rs 34,209 crore, up 72% from Rs 19,862 crore in 2006. The FPOs made by six listed companies raised Rs 10,928 crore as against 19 similar issues that could raise only Rs 4,817 crore the previous year.
The mobilisation in 2007 could have been higher but the slow pace of divestment has proved a stumbling block. The divestment of PSUs accounted Rs 16,819 crore in 2004 and zero both in 2005 and 2006. Power Grid was a meager divestment of Rs 995 crore in 2007, Prime Database said.
Haldea said that the book-building issues continued to dominate. Of the 107 issues, 93 issues were made through this route which have mobilised more than 99% of the year?s amount.
Haldea said that there was a continued dominance of fresh capital which typically goes into productive assets as against offers for sale where proceeds go to the seller-promoters, funds and other investors and not to the company.
The year witnessed the entry of the real estate sector in the listing domain in a big way. The 12 issues of real estate majors dominated with a 33% share at Rs 15,185 crore of the total resource mobilisation. “Among other sectors, banking had a 28% share at Rs 12,639 crore through issues from four companies while power and telecom had a 7% share each,” Prime Database said.
