edited by: Mohammad Haris
Last Update: February 04, 2023, 13:34 IST
A total of Rs 3.92 lakh crore funds were raised from the debt market.
India’s capital markets had a good year in FY23, although global macroeconomic and financial market developments took a toll
According to the latest Economic Survey 2022-23, Indian companies raised Rs 5.06 lakh crore through equity and debt routes during April-November 2022, down 8.5 per cent from the year-ago period. It added that fund raising through debt has been a major part of the total fund raising during the period under review.
According to the data compiled in the survey, a total of Rs 3.92 lakh crore was raised from the debt market and Rs 1.14 crore came through the equity route. This takes out the cumulative Rs 5.06 lakh crore in FY23 (up to November 2022).
In comparison, firms had raised Rs 5.53 lakh crore, including Rs 3.71 lakh crore through debt and Rs 1.81 lakh crore through equity, including Rs 89,166 crore from initial public offerings (IPOs) during April-November 2021. included Rs. Overall, India’s capital markets had a good year in FY23, according to the survey, although global macroeconomic and financial market developments took some impact.
It added, “Global macroeconomic uncertainty, unprecedented inflation, tightening of monetary policy, volatile markets, etc. resulted in subdued investor sentiments, resulting in underperformance of global capital markets in FY23.”
Within the equity segment, funds mostly came from preferential issue of equity shares (Rs 54,414 crore), which has been one of the fastest mechanisms for companies to rake in funds during the period under review. This was much higher than the Rs 43,000 crore raised through the route in April-November 2021. IPO Marg, which helped 104 companies raise Rs 48,095 crore during the period under review, while 76 firms collected Rs 89,166 crore in the year-ago period.
Apart from preferential issue of shares and IPO, funds were also raised through rights issue and qualified institutional placement (QIP). “Compared to FY2022, there is a 37 per cent increase in the number of firms getting listed on exchanges, although the amount raised has almost halved compared to the previous year,” said the survey.
While this has been a weak year so far in terms of raising funds through IPOs, the number of SMEs coming up with public offerings has been encouraging.
Compared to FY22 (by November 2021), not only did the number of SMEs that came up with IPOs almost double this year, but the total amount raised by them was almost three times what they raised in the same period last year .
Apart from this, the year also witnessed the biggest ever IPO in the history of India. In May 2022, the central government will dilute its stake in Life Insurance Corporation (LIC) India and listed it on stock exchanges, making it the largest ever IPO in India and the sixth largest IPO of 2022 globally.
Moreover, the listing of LIC accounted for more than a third of the resources raised in the primary equity market till November 2022. Of the total Rs 3.92 lakh crore raised through Indian debt markets in FY23, Rs 3.85 lakh crore came from private placements and Rs 6,624 crore. was through a public issue. However, the lower activity in public debt issuance was more than compensated for by private debt placement.
The number of private debt placements increased by 11 per cent to 945 from 851, while resources raised rose by 6 per cent to Rs 3.85 lakh crore in April-November 2022 as against Rs 3.62 lakh crore in the same period a year ago. mentioned in the survey.
(With inputs from PTI)
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