In a significant jump over the last financial year, corporates have raised INR 14,508.11 crore via Initial Public Offerings (IPOs) in 2015-16. “Corporate India raised about 10 times more funds via initial public offerings (IPOs) in FY2016 as compared to the previous year”, said the National Stock Exchange (NSE) in a statement. The amount was raised by 22 firms that made their debut on exchange platforms in the country.
“In spite of volatile secondary market, funds raised through IPO issuances in FY 2015-16 have witnessed an increase of more than 10 times of FY 2014-15. Last year, total money raised was INR 1,418.21 crore,” NSE said in a release.
Among the listed companies, infrastructure entities lead the chart with about 33 percent of the companies representing the sector.
The improving economic scenario along with an enabling legal structure may have also helped the IPO market. Capital market has seen introduction of some important rules and regulations to make fund raising process hassle free and less time consuming.
Among the regulatory advancements that took place in FY 2015-16, declaration regarding the launch of electronic-IPO gateway seems to have benefited many investors. The market regulator, Securities and Exchange Board of India (SEBI) has allowed norms for firms to launch their IPOs in an electronic form (e-IPO).This new way of launching IPOs has given many benefits to the companies. The e-IPO has reduced time between the share sale and the listing, and has also enhanced the reach of retail investors in the share sale.