Companies raise Rs 1.6L cr from primary market in FY21

As the pandemic hit business activities and liquidity flows, companies raised funds worth Rs 1.6 lakh crore from the primary market in the last financial year through initial public offerings (IPO), offer for sale (OFS), follow on public offering (FPO) among other routes.

It is the second highest fund amount raised from the primary in the last 10 years after Rs 1.74 lakh crore raised by the companies in FY2017-18, showed a Motilal Oswal Financial Services report.

“Funds worth Rs 1.6 trillion were raised from the primary market in FY21 via the QIP, IPO, OFS, FPO, etc. route,” it said.

The Motilal Oswal report noted that around 21 out of 30 biggest IPOs in FY21 are trading above their issue price.

Route Mobile and Happiest Minds Technologies have delivered the highest returns from all IPOs listed in FY21.

It also noted that the Midcap 100 and Smallcap 100 indices outperformed the Nifty in nine out of 12 months.

Average daily cash volumes declined by 19 per cent MoM to Rs 717 billion (Rs 71,700 crore) in March 2021 as the phase-II of the peak margin requirement was implemented in March.

Monthly institutional cash trading volumes declined 5 per cent on a month-on-month basis in March to Rs 5.7 trillion (Rs 5.6 lakh crore), it said.