The jump in fund raising through equity and equity linked issuances from the equity capital markets (ECM) has been phenomenal with a staggering increase of 208% in 2017 over the preceding year. The activity is likely to remain buoyant this year too.
The proceeds have been the highest in ten years time since 2007 when the total mop up via the ECM reached Rs 2,028 billion. In the quarter ending December of 2017, India Inc alone through three IPO offerings raised an amount over Rs. 65 billion with a quarterly growth of 59.6% in comparison to the third quarter of 2017. This also amounted to the highest level on a quarter on quarter basis since second quarter of 2007.
Fund raising through follow on offers also increased to a record high in the gone by year with the total proceeds of $17.4 billion. SBI in June 2017 through QIP raised a staggering $2.3 billion. The year 2017 has also been the year of IPOs both in terms of number of floated issues as well as the proceeds with a total mop up of $11.1 billion. Biggest IPO was tabled by GIC with an issue of $1.7 billion.
The year also witnessed the first IPO by investment trust with IRB InvIT garnering $783.5 million. And the report also signals that the larger pie of the ECM activity was led by Kotak Mahindra Bank who took $3.6 billion for the underwriting activity in proceeds followed by Citi and Axis Bank.