Primary equities at all-time high in 04

New Delhi, Feb 25 | Updated: Feb 26 2005, 05:39am hrs
Primary equity issues have scaled to an all-time high in 2004 in terms of volume, over two times higher than the previous peak of 1995, the Survey said. The volume of public issues (both equity and debt) rose by almost five times to Rs 35,859 crore in 2004 from Rs 5,643 crore in 2001, it said.

The year 2005, too, would see a considerable volume of public equity issues, it said.

Equity issues accounted for over 93% of the total mop-up in 2004. Of the total equity mobilisation of Rs 33,475 crore in 2004, Rs 22,611 crore was on account of IPOs.

The growing sophistication of the market was visible in a slew of very large issues, the Survey said. The average IPO size rose from Rs 31 crore in 2001 to Rs 870 crore in 2004.

The success of these large issues has dispelled earlier doubts about the feasibility of billion dollar offerings in the Indian market.

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Public issues scale all-time high in 2004
Equity forms 93% of total issues
99% issues through book-building
A major development in the Indian market has been the introduction of screen-based bookbuilding. The resource mobilisation through bookbuilding rose steadily from 25% of public equity offerings in 2001 to 53% in 2002, 64% in 2003 and 99% in 2004.

The primary market has matched the secondary market in technology to achieve an impersonal system of price discovery with widespread retail participation.