As per a report in ‘The Economic Times’, fundraising through initial public offerings (IPOs) touched a record high in the year 2021. According to data, 63 companies have floated an initial share sale this year, raising Rs 1.19 lakh crore from public investors.
This is nearly 4.5 times higher than the IPO fundraising in 2020 and almost double that of 2017 which held the record until now for highest fundraising, data compiled by Prime Database showed. In 2020, 15 companies raised Rs26,613 crore from the public market while in 2017, 36 companies raised Rs68,827 crore.
Market participants expect this buoyancy in the primary market to continue despite some lacklustre listing in the recent past. Currently, 35 companies have received a nod from the Securities and Exchange Board of India (SEBI) to float IPOs worth Rs50,000 crore. Another 33 companies have filed their offer documents for raising around Rs60,000 and are awaiting SEBI approval.
The year saw a slew of IPOs from the new age businesses. One 97 Communications - the parent company of Paytm - tapped capital markets to raise Rs18,300 crore making it the largest IPO of the year. Other tech companies including Zomato and Nykaa also made their debuts in 2021.
Even in terms of overall fundraising, 2021 has been a record year for the markets. India Inc raised capital of Rs 2.17 lakh crore through public markets against the previous record of Rs 1.85 lakh crore in 2020. Overall fundraising includes both debt and equity such as IPOs, follow-on offers, qualified institutional placements and bond issuances by state-owned and private companies.