<p style="font-weight: 400;">Notwithstanding the Coronavirus pandemic, a whopping Rs 1,77,468 crore was raised through public equity markets in the calendar year 2020 in India. This was more than twice the figure of Rs 82,241 crore raised in 2019, according to Prime Database – a data collation and capital market analysis platform.</p>
<p style="font-weight: 400;">Strong retail participation in initial public offering (IPO), huge listing gains and highest-ever amount raised through qualified institutional placement (QIP) – a mechanism primarily used by listed companies to raise capital– were the highlights of the current year that otherwise brought in severe financial stress leading to a global recession.</p>
<p style="font-weight: 400;">Pranav Haldea, managing director, Prime Database Group, said that contrary to the despondency due to the pandemic, 15 main-board IPOs came to the market collectively raising over Rs 26,611 crore. “This was an increase of 115 per cent from the Rs 12,362 crore raised through 16 IPOs in 2019,” he said in a statement.</p>
<p style="font-weight: 400;">The statement added that the largest IPO in 2020 was that of SBI Cards for Rs 10,341 crore. Out of the 15 IPOs, five had a prior private equity or venture capital investment. As far as retail investors are concerned, the year witnessed tremendous response from them. The highest number of applications was received by SBI Cards at 26.95 lakhs followed by the state-owned defence major Mazagon Dock with 23.56 lakhs. Haldea added that of the 14 IPOs which got listed, as any as 10 gave a return of over 10 per cent, based on closing price on listing date.</p>
<p style="font-weight: 400;">Haldea also said that the continuing buoyancy in secondary markets as also the listing performance of the IPOs in the last few months have provided the necessary impetus to the primary market. “The IPO pipeline continues to remain strong with 28 companies holding SEBI approval wanting to raise nearly Rs 28,706 crore and another seven companies wanting to raise nearly Rs 4,410 crore awaiting SEBI approval,” he said.</p>.