India’s capital markets have done “exceptionally well” and allowed record mobilisation of risk capital for Indian companies in FY22, the Economic Survey 2021-22 said.
Among major emerging market economies, the Indian markets outperformed its peers in April-December 2021 period, the Survey said. The Sensex and Nifty touched their peak, at 61,766 points and 18,477 points on October 18, 2021.
“The year 2021-22 so far has been an exceptional year for the primary markets with a boom in fundraising through IPOs by many new age companies/tech start-ups/unicorns,” the Survey said.
During April-November, a total of Rs 89,066 crore was raised via 75 IPO issues, which was much higher than in any year in the last decade.
“The money raised by IPOs has been greater than what has been raised in any year in the last decade by a large margin.”
Amount raised through rights issues, however, declined by 62.6 per cent to Rs 22,659 crore in April-November 2021, as compared to Rs 60,608 crore during corresponding period of previous year.
Besides, though the amount raised through Qualified Institutional Placements (QIP) declined by 52.9 per cent, the amount raised by way of preferential allotment increased by 67.3 per cent during April-November 2021, as compared to the same period previous year.
Overall, during April-November 2021, Rs 1.81 lakh crore have been raised through equity issues through diverse modes — public offerings, rights, QIP and preferential issues, it added.
“The exuberance associated with the listings manifested in huge oversubscriptions by retail, High Net worth Individuals (HNIs) and institutional investors and stellar listing gains have pushed more and more companies to tap the markets.”
The response by all categories of investors in IPOs of companies was reflective of not only the confidence in markets, but also that in corporate sector performance and prospects of the economy in the long run, it added.