‘Rs 36,253 cr raised via public equity mkts in 2012'
Mumbai: Helped by Offers for Sale (OFS) route, a whopping Rs 36,253 core was mobilised through public equity markets in 2012 -- more than twice the Rs 17,480 crore raised in the preceding year, according to Prime Database.
"The year could have been much better but for the deferment of several PSU offerings and the volatility in the secondary market through most of the year. The year, of course, fell substantially short of Rs 99,022 crore, the highest amount that has ever been raised (in 2010)," said Prithvi Haldea, Chairman, PRIME Database, India's premier database on primary capital markets.
PSUs dominated 2012 with a total raising of Rs 19,679 crore or 55 percent of the total amount. This was much higher than Rs 4,578 crore that had been raised by them in 2011.
According to Prime, fund raising in 2012 was substantially achieved through the 23 Offers for Sale through Stock Exchanges (OFS), the new secondary sale method allowed by SEBI this year to help promoters of already-listed companies in complying with the minimum public shareholding requirement.
These offers accounted for as much as 66 percent of the total amount raised. For investors, these sales are substantially risk-free as these are from already listed companies and are at a discount to the market price, said PRIME Database.
However, proceeds from such sales do not go the company but to the selling shareholders, it added.
OFS picked up in the later part of the year given SEBI's stern warnings that the compliance deadline of June 30, 2013 would not be extended, Haldea said.
Another new instrument was allowed by SEBI during the year -the IPP- primarily for the same purpose. However, only 2 companies opted for this route - Godrej Properties and Godrej Industries, offering shares worth Rs 841 crore.
According to Haldea, the unstable climate in the country almost through the year resulted in a continuing lull in IPOs; only 25 came to the market collectively raising a meagre Rs 6,938 crore (compared to 37 IPOs in the preceding year mobilising Rs 5,966 crore).