Promoters cash out, garner Rs 6,700 crore in OFS alone this year, excluding IPO

Indian stocks market has had a phenomenal time in 2017 as bulls remain charged throughout the year. Even the promoters didn’t let go market rally futile and encashed as much as Rs 6,685.78 crore via OFS (offer for sale) route, according to data available on NSE. This amount is exclusive of the money raised from the offer for sale via IPO (initial public offering) channel. In 2017, there were many public offerings which didn’t issue any fresh equity in the market and were out and out stake sale. In 2017, companies garnered a whopping amount of Rs 70,000 crore through IPOs, out of which more than Rs 50,000 crore was just through stake sale by existing shareholders.

The state-run thermal electricity generator NTPC garnered as much as Rs 3,402.95 crore, through retail and general categories. Other than NTPC, Bharat Electronics, NALCO and Interglobe Aviation were among notable companies which raised about Rs 969.16 crore, Rs 628.07 crore and Rs 448,98,48,210 respectively. Though the total amount of Rs 6,685.78 crore raised through 12 offer for sales in 2017 dropped by 11.78% in the 2017 year on year. In 2016, corporates raised Rs 7,578,96 crore from just 8 offer for sales.

In 2017, the IPOs which comprised of an offer for sale only were also some of India’s biggest public offers. State-run companies such as General Insurance Corporation raised Rs 11,370 crore, The New India Assurance Company raised Rs 9,600 crore, SBI Life Insurance raised Rs 8,400 crore while private insurers HDFC Standard Life Insurance garnered Rs 8,700 crore and ICICI Lombard General Insurance raised Rs 5,700 crore. In 2017, Asia’s oldest stock exchange BSE also went public but didn’t issue any fresh equity, raising Rs 1,241 crore through OFS. 

OFS in 2017 at glance