Mumbai, Dec. 23: India Inc. — both state-run and private-run companies — raised a record high amount from the equity markets in 2010 — just a shade under `1 lakh crore. The large number of initial public offerings (IPOs), follow on public offerings (FPOs) and qualified institutional placements (QIPs) during the year rounded up a total of `99,452 crore.
The government accounted for the lion’s share of the proceeds — over 70 per cent of this total. The biggest IPO was Coal India from the government’s stable. The biggest FPOs such as NMDC and Power Grid were also brought in by the government.
Incidentally, the money raised during the year was almost twice the total fundraising from the Indian capital markets in 2009 and five times the amount raised in the recession year of 2008. During 2008, India Inc. raised a total of `19,385 crore from the capital markets in the entire year. more than half of this amount came from just one public issue — Mr Anil Ambani’s Reliance Power. Markets went into a tailspin just days after the Reliance Power IPO and the rest of the year was a complete rout.
Incidentally, 2010 has also managed to cross the fund raising record that was set in the last year of the boom — 2007, according to a study compiled by SMC Securities. The year 2010 saw several records being created in the Indian public issues market history. “Whichever way you look at it, 2010 was “an action packed year for the Indian primary market and the most happening place was the department of disinvestments,” said Mr Jagann-adham Thunuguntla of SMC securities.
The government had gone full steam with its disinvestment programme after the Left parties, erstwhile allies, were defeated in the last Parliamentary elections.The mother of all IPOs was of course, Coal India.
Another interesting trend that’s seen in fund-raising is the diminishing role of foreign markets. During 2007, Indian Inc had raised over $10 billion via ADR/GDR listings. This amount has fallen to just $2.2 billion for 2010.
Fund raising
India Inc has raised `99,452 crore through domestic sources in 2010 — the highest in the last four years.
2007 2008 2009 2010
IPOs 33,782 16,995 17,002 39,710
FPOs 11,551 286 23 31,403
QIPs 20,011 2,104 32,631 28,339
Total 65,344 19,385 49,656 99,452
Source: SMC In rupees crores