Comments
Public equity issues in FY12 raised only half of what they did in the previous year.
The mobilisation through public equity issues in fiscal year 2011-12 to date is Rs 23,969 crore against Rs 46,267 crore in the previous year, according to Prime Database.
There were 37 public issues this year against 57 issues in the previous year.
In the last 10 years, the maximum amount raised through public equity issues was Rs 52,219 crore, in fiscal 2007-08.
PSUs and PSU banks dominated fiscal 2012 by raising 73 per cent or Rs 17,453 crore of the total. Of this, Rs 14,019 crore was garnered through divestments and Rs 3,434 crore through issue of fresh capital, according to Prime Database.
The three PSUs that entered the market during the year were NBCC, Power Finance Corporation (FPO) and ONGC (Offer for Sale).
ONGC, Wipro help
The money mobilised through these issues would have been much lower, if the ONGC and Wipro offers for sale had not sailed through, said Mr Prithvi Haldea, Managing Director, Prime Database. The two offers accounted for Rs. 13,517 crore.
Excluding the Wipro and ONGC offers, the average deal size fell to just Rs 299 crore from Rs 812 crore in the previous year. There were only two issues exceeding Rs1,000 crore, while there were 12 issues of less than Rs 50 crore.
Also, ASBA failed to make its mark even in 2011-12. Despite five years in operation, only about 30 per cent of applications of retail investors came through this route, said Mr Haldea.
priya.s@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.