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The number of initial public offerings (IPO) and the amount mobilised during the first seven months of the current fiscal year have already exceeded that of the full fiscal 2020-21, the Finance Ministry informed the Lok Sabha on Monday.
Meanwhile, it admitted that over ₹37,000 crore of GST compensation dues for FY21 is yet to be paid to States. It also clarified that rate of GST on health insurance premium will not come down.
Funds raised via IPOs
In a written response, Finance Minister Nirmala Sitharaman said that a total of 61 companies raised over ₹52,700 crore during April-October period of the current fiscal. For full fiscal 2020-21, 56 companies hit the market and raised over ₹31,000 crore.
“During the financial year 2020-21, 56 entities came out with IPOs, of which 27 entities are small and medium enterprises (SME). During the financial year 2021-22, 61 entities have already come out with IPOs till October 2021, of which 34 entities are small and medium enterprises (SME),” she said.
She also mentioned that the IPOs are spread across the economic sectors including automobiles, cement, electronics equipment, food processing, textiles etc. During the current fiscal, 10 healthcare companies entered the market till date, while seven companies from the cement and construction sectors also hit the market.
“A large number of manufacturing and services sector companies are coming up for listing. The growth of manufacturing sector in the country aids and promotes the employment generation not only in manufacturing but also in other sectors and vice-versa,” the Minister said.
GST Compensation
In response to another question, the Minister of State for Finance, Pankaj Chaudhary said that over ₹37,000 crore of GST compensation is yet to be paid to States and three Union Territories (with legislature) for FY21.
He said GST compensation for financial years 2017-18, 2018-19 and 2019-20 has already been paid to all the States. However, the economic impact of the pandemic has led to higher compensation requirement due to lower GST collection and at the same time lower collection of GST compensation cess, he said.
Health Insurance
In response to a question on premium of health insurance, the Ministry said in a written reply that pricing of health insurance products offered by insurers is based on the age of the insured and other relevant risk factors, such as claims experience and the principles of pricing.
Further, it mentioned that the GST levied on health insurance premium is 18 per cent. At present, “no recommendation to reduce the GST rate on health insurance premium is under consideration of the GST Council,” it said.
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