Companies raised as much as Rs.5,855 crore through initial public offers (IPO) in the first three months of the current financial year, the highest quarterly mobilisation in nine years.
SME segmentAccording to Prime Database, a primary market tracker, the three-month period between April and June saw six main board IPOs and as many as 13 offers in the segment for small and medium enterprises (SMEs).
Main board IPOs are listed on the main platform of BSE and NSE while there is a separate segment for listing of SME companies. Both, BSE and NSE have such dedicated platforms.
Despite a volatile secondary market, six main-board IPOs hit the market collectively raising Rs.5,728 crore in the quarter (corresponding period of FY16 saw five IPOs collecting Rs.2,280 crore) while 13 SME issues collected a total of Rs.127 crore, said Pranav Haldea, Managing Director, Prime Database.
The previous highest-ever mobilisation through IPOs (April-June) was in 2007-08 at Rs.13,083 crore.
The largest IPO during the period was of Equitas Holdings for Rs.2,177 crore..
Incidentally, all six companies had anchor investors who collectively subscribed to 33 per cent of the total public issue amount.
The domestic institutional investors played a significant role as anchor investors with their subscription amounting to 21 per cent of the amount compared to 12 per cent from foreign investors. The period witnessed good response from retail investors as well.