Confirming SEBI concerns, funds raised from capital market this year was down 60 per cent this year at ₹63,744 crore from the all-time high of ₹1,60,032 crore logged in 2017.
Of overall amount raised this year, fresh capital mop-up accounted for 46 per cent at ₹29,224 crore while the remaining ₹34,520 crore was through offer-for-sale, according to data released by Prime Database.
About 24 main-board IPOs collectively raised ₹30,959 crore against 36 IPOs raising ₹67,000 crore in 2017, registering a decline of 54 per cent.
Bandhan Bank which raised ₹4,473 crore was the highest this year through the IPO route while average fund raised was at ₹1,290 crore. Interestingly, only six out of the 24 IPOs that hit the market had a prior private equity and venture capital investment. Offer-for-sale by such PE/VC investors was at ₹3,242 crore accounted for 10 per cent of the total IPO amount.
Offer-for-sale by promoters at ₹17,697 crore accounted for 57 per cent of the IPO fund raised.
Muted action in near-term
Pranav Haldea, Managing Director, Prime Database, said there will not be much action in IPO issuance in the first half of next year till completion of general elections despite the pipeline on the IPO remaining strong with 59 companies holding SEBI approval for raising about ₹63,170 crore and another 19 companies wanting to raise nearly ₹18,067 crore awaiting SEBI approval.
Of the 24 IPOs, 17 companies had anchor investors, which collectively subscribed to 32 per cent of the total public issue amount.
The domestic institutional investors played a significant role as anchor investors, with their subscription amounting to 16 per cent of the fund raised, according Prime Data.
While six IPOs that received mega response of over 10 times include Apollo Micro Systems (176 times), Amber Enterprises (115 times), RITES (67 times), HDFC Asset Management (60 times), Galaxy Surfactants (14 times) and Bandhan Bank (11 times), seven other IPOs were oversubscribed by more than three times. The remaining 11 IPOs were oversubscribed between one and three times.
The highest number of applications from retail investor was received by HDFC Asset Management at 23.30 lakh followed by Amber Enterprises (13.79 lakh), Apollo Micro Systems (13.09 lakh) and RITES (12.97 lakh).
Of the 24 IPOs which got listed, seven gave a return of over 10 per cent. Apollo Micro Systems gave a best return of 65 per cent followed by HDFC Asset Management (65 per cent), Amber Enterprises (44 per cent), Lemon Tree Hotels (28 per cent), Bandhan Bank (27 per cent), RITES (15 per cent) and Galaxy Surfactants (15 per cent). However, given the correction in the markets in the second half of the year, 15 of the 24 IPOs are presently trading below the issue price.