The year 2010 and 2017 had seen highest mobilization of funds through IPOs of over Rs 70,000 crore. In 2017, we had many insurance Companies like HDFC Standard Insurance (Rs 8,695 crore), SBI Life Insurance (Rs 8,400 crore), ICICI Lombard General Insurance (Rs 5,700 crore), General Insurance Corporation of India (Rs 11,175 crore), New India Assurance (Rs 9,600 crore) approaching markets to raise funds through IPO market.
IndiGrid InvIT & IRB InvIT together raised over Rs 8,000 crore in the same year. There were approximately 38 IPOs in that year. In the year 2010 few PSUs like Coal India, NTPC, NMDC had raised quite a large funds through IPO Market. In 2021, so far approximately Rs 51,000 crore is raised through IPO & FPO market including Zomato IPO. Patym has got shareholders’ approval to raise up to Rs 12,000 crore. Considering that we still have another 5 months left in this calendar year & overall market conditions are still conducive, there is likelihood that the IPO market may clock record fund raising in 2021.
Markets performed very well in 2021. Despite economy being hit by COVID pandemic, most of the businesses found the new way of functioning their businesses & many improved their efficiencies & margins by cutting costs & making more use of Technology. India also became one of the best performing markets globally. The performance of secondary markets attracted more & more retail investors to the equity market.
Some of the recent IPOs like Happiest Mind Technologies, Route Mobile, Clean Science Technology, GR Infraprojects offered more than 100 percent returns to the investors. The overall optimism in the IPO market & performance of secondary markets has created positive environment for various small & big companies to raise funds through IPO market, as a result we have seen many companies going public in 2021.
2017 was the previous highest fund-raising year in which Rs 75,279 crore was raised through IPO market. Given below is the table showing funds raised through IPOs & FPOs in last few years.
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