Indian companies managed to raise record-high capital in 2020, defying disruptions caused by the covid-19 and economic slowdown. Fundraising through public equity markets was at a record Rs 1.7 trillion in 2020, surpassing the previous high of Rs 1.6 trillion in 2017, data provided by Prime Database showed.
Capital raised by India Inc in this year is 116 per cent higher than the previous year which was at Rs 82,241 crores and Rs 62,651 crores in 2018.
“Strong retail participation in initial public offerings (IPOs), huge listing gains and highest-ever amount raised through qualified institutional placements (QIPs) and infrastructure investment trust (InvITs)/ real estate investment trusts (ReITs) were the key highlights of the year,” Pranav Haldea, Managing Director, Prime Database Group said.
In the primary markets, there were 15 main-board IPOs which collectively raised Rs 26,611 crore, rising 115% from the Rs 12,362 crore raised through 16 IPOs in 2019. The largest IPO in 2020 was from SBI Cards for Rs 10,341 crore. The average deal size was Rs 1,774 crore. According to Haldea, response to IPOs was further buoyed by the strong listing performance of IPOs of the year.
Of the 14 IPOs which got listed, 10 offered a return of over 10% (based on the closing price on the listing date). Burger King jumped 131%, followed by Happiest Minds Technologies (123%), Mrs. Bectors Food Specialities (107%), Route Mobile (86%), Rossari Biotech (75%), Chemcon Speciality Chemicals (72%), Gland Pharma (21%, Mazagon Dock (19%), Computer Age Management Services (14%) and Likhitha Infrastructure (14%).