IPO raises Rs 25,000 crore during FY0607

New Delhi, May 14 (UNI) From the dismal Rs 1,100 crore being raised through initial public offers (IPO) in 2001-02, Indian companies raised the highest ever Rs 25,000 crore through equity offerings, including IPOs and follow-on issues, in fiscal 2006-07, a latest study showed.

According prime, a database in primary capital market the year saw an IPO flush with total mobilisation during the fiscal being pegged at Rs 24,993 crore, which is higher by five per cent than preceding year's Rs 23,676 crore.

Pegged back by the secondary market crashes during the year which forced temporary shelving of IPOs as also lack of divestments prome Managing Director Prithvi Haldea feels ''mobilisation in the year could have been higher.'' As many as 76 IPOs collectively raised Rs 23,706 crore or 95 per cent of the total amount in FY07 compared to same number of IPOs floated a year-ago mobilising just Rs 10,808 crore.

With an ever increasing appetite for equities in India Haldea said,''the main reason for the good performance of the primary market was the buoyant secondary market almost through out the year, the economic resurgence and the stable political climate helped the scenario.'' Despite the feel-good factor for Indian companies to raise funds, eight IPOs (all small) failed to get a favourable response due to the secondary market crashes, he added.

The major IPOs during the year were from Cairn India (Rs 5,789 crore), Reliance Petroleum (Rs 2,700 crore) and Idea Cellular (Rs 2,444 crore).

However, follow-on public offerings (FPOs) by listed companies saw a huge decline during the year with only nine listed companies raising Rs 1,287 crore as compared to 26 firms with total offer of Rs 12,867 crore in the preceding year, the database said.

This accounted for only five per cent of the total mobilisation with the major FPO during the year being Patel Engineering (Rs 425 crore), Tanla Solutions (Rs 379 crore) and D S Kulkarni (Rs 134 crore.) UNI