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Funds Raised Through IPOs Plunge 82% In FY12

As per analysis of data available with the stock exchanges, a total of 33 Indian companies together raised Rs.5,808 crore during the last fiscal ended March 31, 2012 through initial public offering or IPO, compared to Rs.33,183 crore in 2010-11, reflecting a 82% decline.

Interestingly, NBCC was the single state-owned firm to enter the capital market through IPO route during 2011-12 and raised around Rs.120 crore through its public offer.

Besides, two other public sector firms, Power Finance Corporation and ONGC, raised Rs.4,660 crore and Rs.12,000 crore, respectively, thorough follow-own public offers during the last fiscal.

Among the major IPOs of the year, L&T Finance Holdings raised Rs.1,245 crore, Muthoot Finance garnered Rs.900 crore, Future Ventures India Ltd, part of Kishore Biyani-promoted Future Group, garnered Rs.750 crore and commodity bourse MCX raised Rs.663 crore.

The other IPOs that entered the market were Flexituff International, Innoventive Industries, PG Electropast, TD Power Systems, SRS Ltd, Aanjaneya Lifecare and Tree House Education & Accessories.

Moreover, as many as 45 companies refrained from bringing out their IPOs during FY12, despite obtaining the go-ahead from market regulator SEBI. Together, these companies were aiming to raise Rs.33,787 crore.

Market experts believe many companies were averse to enter the capital market due to the volatile market conditions, as well as the fact that firms that did implement their public stake sale plans are trading below the issue price. The companies which let their regulatory approvals lapse during the year included Jindal Power, Sterlite Energy, BPTP, Gujarat State Petroleum Corp, Micromax and Embassy Property.

by RTT Staff Writer

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