IPO fundraising: A blockbuster year; all you need to know at a glance

December 16, 2017 2:22 AM

The year 2017 saw India Inc notching the highest-ever fundraising through initial public offerings (IPOs) as firms involved in different businesses, from insurance to infrastructure, went to the primary market to raise funds.

India Inc, IPOs, India, InsuranceThe year 2017 saw India Inc notching the highest-ever fundraising through initial public offerings (IPOs) as firms involved in different businesses, from insurance to infrastructure, went to the primary market to raise funds.

The year 2017 saw India Inc notching the highest-ever fundraising through initial public offerings (IPOs) as firms involved in different businesses, from insurance to infrastructure, went to the primary market to raise funds. They had raised Rs 66,000 crore through IPOs till November.  The IPO market continues to look rosy as retail and institutional investors look for productive avenues to invest in an economy with a shrinking interest rate, low bond yields and real estate investments under scrutiny. Most IPOs and QIPs were in the nature of exit or sell-downs by existing investors or for balance-sheet strengthening.  Insurance dominated the year in terms of new listing as the top-five IPOs were from this space. The year saw the largest IPO in a decade—from General Insurance.

Corporation, for Rs 11,200 crore—which was oversubscribed 1.4 times. In fact, 72% of the funds raised through new offerings were accounted for by just 13 issuance and
non-banking finance companies.  SME IPOs were the highlight of the year as 122 companies had raised Rs 1,520 crore till November. As per Motilal Oswal, contribution of the new listings to Indian market cap is at a seven-year high. The IPOs were spread across industries—companies from 18 different industries raised funds though IPOs this year.  Thanks to the government’s disinvestment drive this fiscal, offers for sale saw a significant rise. About 80% of the amount raised through OFS was accounted for by the government’s disinvestment. The largest one was that of NTPC in August 2017 for Rs 9,700 crore. Even Qualified Institutional Placement, after two muted years, have picked up sharply, with capital raised through this route reaching a new high, of Rs 46,000 crore, till November.

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