Page 164 - economic_survey_2021-2022

138 Economic Survey 2021-22

DEVELOPMENT IN CAPITAL MARKETS

1. PRIMARY MARKET
A. Equity

4.36 In April-November 2021, IPOs of 75 companies have listed, garnering `89,066 crore, as
compared to 29 companies raising `14,733 crore during April- November 2020, indicating stupendous
rise of 504.5 per cent in fund mobilization. The money raised by IPOs has been greater than what has
been raised in any year in last decade by a large margin. Amount raised through rights issues however
declined by 62.6 per cent to `22,659 crore in April-November 2021, as compared to `60,608 crore
during corresponding period of previous year. Though amount raised through Qualified Institutional
Placements (QIP) declined by 52.9 per cent, amount raised by way of preferential allotment increased
by 67.3 per cent during April-November 2021, as compared to same period previous year. Overall,
during April-November 2021, `1.81 lakh crore have been raised through equity issues through
diverse modes viz., public offerings, rights, QIP and preferential issues (Table 7).

Table 7: Primary Market Resource Mobilisation through Public and Rights Issues (Equity)
Public
(IPO+FPO) Rights QIPs Preferential issues Total
Period No. of Amount No. of Amount No. of Amount No. of Amount No. of Amount
issues (` crore) issues (` crore) issues (` crore) issues (` crore) issues (` crore)
2016-17 106 29,210 12 3,274 20 8,464 409 44,235 547 85,183
2017-18 189 78,497 23 21,268 54 71,033 420 59,527 686 2,30,325
2018-19 136 21,720 9 2,001 14 8,678 402 2,10,159 561 2,42,559
2019-20 62 21,382 17 55,667 14 54,389 284 1,74,886 377 3,06,325
2020-21 57 46,060 21 64,059 31 78,738 234 40,940 343 2,29,797
April-Nov 2020 30 29,733 15 60,608 16 56,725 145 25701 206 1,72,768
April-Nov 2021 75 89,066 18 22,659 23 26,704 233 43,004 349 1,81,433
Source: SEBI
4.37 The year 2021-22 so far has been an exceptional year for the primary markets with a
boom in fundraising through IPOs by many new age companies/tech start-ups/unicorns. The
exuberance associated with the listings manifested in huge oversubscriptions by retail, High Net
worth Individuals (HNIs) and institutional investors and stellar listing gains have pushed more
and more companies to tap the markets (Table 8). The tremendous response by all categories of
investors in IPOs of companies was reflective of not only the confidence in markets, but also that
in corporate sector performance and prospects of the economy in the long run.

Table 8: IPO Oversubscription trends
Oversubscription Range (No. of times No. of IPOs listed
oversubscribed) (April-November 2021)
>100 8
≥51 ≤100 11
≥21 ≤ 50 6
≥ 11 ≤ 20 11
≥1 ≤ 10 39
< 1 Nil
Total 75
Source: SEBI