Less public offers, but greater fund raising this yr: RBI
Indian companies raised one-third more funds through public offers in April-December 2006, although the number of such issues came down slightly, the central bank said in a study on Monday.
By PTI |
MUMBAI: Indian companies raised one-third more funds through public offers in April-December 2006, although the number of such issues came down slightly, the central bank said in a study on Monday.
"Cumulative resources increased 33 per cent to Rs 25,365 crore, even as the number of issues came down from 88 to 78," the Reserve Bank said in its Macroeconomic and Monetary Developments, Third Quarter Review 2006-07.
The average size of public issues increased from Rs 217 crore during April-December 2005 to Rs 325 crore during April-December 2006.
Out of 78 issues during this period, 41 issues were IPOs, accounting for 78.7 per cent of the resource mobilisation. Except one issue, all public issues were in the form of equity, the RBI said.
Mobilisation through private placement increased by 55.5 per cent to Rs 71,038 crore during April-September 2006 over the coresponding period in 2005-06 while resources mobilised by private and public sector increased by 67 per cent and 43 per cent respectively.
Financial intermediaries accounted for the bulk of total resource mobilisation at 70.2 per cent of the total funds raised from private placement during April-September 2006.
The resources raised through Euro-issues, ADRs and GDRs, by Indian corporates during April-December 2006 at Rs 8,841 crore were almost the same as in the corresponding period last fiscal, the apex bank said.
"Cumulative resources increased 33 per cent to Rs 25,365 crore, even as the number of issues came down from 88 to 78," the Reserve Bank said in its Macroeconomic and Monetary Developments, Third Quarter Review 2006-07.
The average size of public issues increased from Rs 217 crore during April-December 2005 to Rs 325 crore during April-December 2006.
Out of 78 issues during this period, 41 issues were IPOs, accounting for 78.7 per cent of the resource mobilisation. Except one issue, all public issues were in the form of equity, the RBI said.
Mobilisation through private placement increased by 55.5 per cent to Rs 71,038 crore during April-September 2006 over the coresponding period in 2005-06 while resources mobilised by private and public sector increased by 67 per cent and 43 per cent respectively.
Financial intermediaries accounted for the bulk of total resource mobilisation at 70.2 per cent of the total funds raised from private placement during April-September 2006.
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The resources raised through Euro-issues, ADRs and GDRs, by Indian corporates during April-December 2006 at Rs 8,841 crore were almost the same as in the corresponding period last fiscal, the apex bank said.
Net mobilisation by MFs increased by a huge 190 per cent to Rs 79,708 crore over the corresponding period of 2005.
"The bulk of the net mobilisation of funds was under income or debt-oriented schemes, while growth and equity-oriented schemes accounted for 25.8 per cent of the net mobilisation of funds," the RBI said.
According to the apex bank, domestic stock markets remained buoyant and recorded gains during the third quarter. Continued buying by FIIs on the back of strong domestic fundamentals, robust corporate results, upward trend in the international equity markets and decline in global crude oil prices provided support to domestic stock markets.
FIIs turned net sellers in December 2006 after making large purchases during the August-November 2006 period.
According to SEBI, FIIs made net purchases of Rs 18,176 crore up to January 22, 2007, as compared with Rs 33,461 crore during the corresponding period of the previous fiscal.
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The price-earnings ratio for the 30 BSE Sensex scrips increased from 20.9 in March 2006 to 22.8 per cent in December 2006 while the BSE's market capitalisation increased 19.9 per cent in the same period this fiscal.
Total turnover of BSE and NSE in the cash segment so far this fiscal was 30.8 per cent higher at Rs 21,23,724 crore while the total turnover in the derivative segment in both the exchanges increased by 72 per cent to Rs 53,49,95 crore.
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