Funds raised in primary markets jump 44%

Our Bureau Updated - April 03, 2013 at 10:10 PM.

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Riding on the wave of disinvestment of public sector undertakings, promoters of Government and private companies managed to collect over Rs 34,000 crore by selling shares in the primary market during 2012-13. This is 44 per cent higher than 2011-12 figures.

According to primary capital market database agency, Prime’s Chairman and Managing Director, Prithvi Haldea, “The mobilisation in the year could have been higher but for the deferment of some large PSU (public sector undertakings) offerings and continuing volatility in the secondary market, through the year.”

The year, of course, fell substantially short of Rs 52,219 crore, the highest amount that has ever been raised (in 2007-08).

Fund mobilisation in 2012-13, according to Haldea, would have been much lower but for the 35 offers-for-sale (OFS) done through the stock exchange auction system.According to Haldea, PSUs dominated the year with a total collection of Rs 23,857 crore or 69 per cent of the total amount.The entire amount was through divestments.

According to Prime, there were a total of 68 initial public offerings, compared with 37 issues in the preceding year. On the other side, 35 OFS raised Rs 28,024 crore, compared with Rs 18,096 crore mobilised by three companies in the preceding year. All these OFS, prompted by SEBI guidelines, were required to dilute promoter holdings.

Of the 68 public issues, as many as 24 issues were listed on the SME (small and medium enterprises) platforms of the NSE/BSE, collectively raising only Rs 206 crore. The largest IPO of the year was from Bharti Infratel (Rs 4,173 crore).

shishir.sinha@thehindu.co.in

Published on April 3, 2013 16:40