FY18 turned out to be a bumper year for Indian primary markets with all-time high equity raising of Rs 1.77 lakh crore led by initial public offers (Rs 84,357 crore including SME IPOs) and qualified institutional placements (Rs 62,358 crore).
According to data provided by Prime Database, 45 mainboard IPOs came to the market collectively raising Rs.82,109 crore and the largest was by General Insurance Corporation (Rs 11,257 crore). Out of 45 such IPOs, 17 issues had prior private equity or venture capital investors, who sold Rs 10,831 crore (13 per cent of the total IPO amount) through offer for sale.
The overall response from the public to the mainboard IPOs of the year was also very good with 17 IPOs receiving subscription of more than 10 times.
“Domestic institutional investors played a significant role as anchor investors, with their subscription amounting to 9 per cent of the amount, compared with 10 per cent from FPIs,” Prime Database pointed out.
FY18 saw highest-ever capital raising by SMEs as well with 155 companies raising Rs 2,247 crore.
Like IPOs, even QIPs also raised highest-ever capital with 52 companies mobilising Rs.62,358 crore. QIPs were dominated by banks with their contribution being 53 per cent (Rs.33,248 crore) of the overall amount and the largest was from State Bank of India (Rs. 15,000 crore or 24 per cent of the total QIP amount).
FY18 was the best year ever for the government as well given disinvestment proceeds worth Rs. 98,965 crore.
Even as 12 companies are holding SEBI approval to raise over Rs. 10,395 crore and another 18 companies are awaiting SEBI approval to raise about Rs. 29,282 crore, Pranav Haldea, Managing Director of Prime Database, said that this pipeline may quickly vanish if the volatility and negative sentiment continues, which looks more likely in FY19.