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Equity fund-raising up 28% in 2019

Despite market volatility due to domestic and global factors, the public equity market is set to end on a high note with a 28 per cent higher fundraising at Rs 81,174 crore in 2019, as against Rs 63,651 crore in previous year.

Though fund mobilisation fell short by 49 per cent compared to the all-time high of Rs 1,60,032 crore raised in 2017, it has improved from Rs 63,651 crore reported in 2018, shows data from Prime Database.

With a 141 per cent jump in fundraising via offers for sale (OFS) at Rs 25,811 crore and a 112 per cent jump in mobilisation of funds through qualified institutional placements (QIPs) at Rs 35,238 crore, the public market ends the year on a positive note, the study said.

However, the IPO market saw a 60 per cent decline in fund-raising to Rs 12,362 crore — with the average deal size at Rs 773 crore. “In 2019, domestic institutional investors played a significant role as anchor investors, accounting for 13 per cent subscription amount, and as far as retail investors are concerned, the year witnessed a good response from them as well,” said Pranav Haldea, MD of Prime Database Group.

Source: Economic Times