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Financial year 2013-14 though witnessed a public fund raising through primary market of Rs 71,370 crore, 13 per cent higher than the previous fiscal’s Rs 63,056 crore, issuers and investors clearly preferred bonds more than equity amid economic uncertainty and stock market volatility.
“As many as 35 issues raised Rs 41,989 crore, higher by more than 147 per cent than Rs 16,982 crore last year through 20 issues,” said Prime Database in a statement on Monday.
The primary capital market was in the initial part of the financial year dominated by bond offers from NBFCs. However, towards the later part of the year, investors also witnessed tax-free bonds issuances from Government-owned companies, Prime noted.
Total funds mopped up through equities was Rs 29,381 crore, 36 per cent lower than Rs 46,073 crore that was raised in the preceding financial year.
According to Pranav Haldea, MD of Prime, the year could have been much better had several PSU divestments, originally slated to be done via public offers, not been made through alternative (secondary market) routes such as buyback, block deals, cross-holding and ETFs.
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