The total amount raised through IPOs in FY 2015-16 was more than 10 times that of FY 2014-15.
Indian companies raised raised Rs 14,508.11 crore through Initial Public Offer (IPO) in financial year (FY) 2015-16. The year saw 22 corporates making their debut on the exchange platforms in India, according to a National Stock Exchange (NSE) release.
The total amount raised through IPOs in FY 2015-16 was more than 10 times that of FY 2014-15. Last year, total money raised was Rs 1,418.21 crore. Infrastructure companies dominated with about 33 per cent issuance coming form the sector. In spite of volatile secondary market.
As many as 21 out of 22 entities were oversubscribed during the current FY, while 15 reported listing gain.
Apart from the economic scenario, an enabling legal framework may have also helped the IPO market. Capital market has seen introduction of some prominent norms and regulations to make fund raising process simpler and less time consuming.
Among the regulatory developments that took place in FY2015-16, announcement regarding the launch of e-IPO gateway seems to have helped many investors. The market regulator SEBI has approved norms for companies to launch their initial public offerings (IPOs) in an electronic form (e-IPO), to reduce the time taken between the share sale and listing, to enhance the reach of retail investors in the share sale, and reduce costs.