Fund raising through IPO dips 53% in first half of FY19

New Delhi, Oct. 7: Indian companies raised ` 12,470 crore through initial public offerings ( IPOs) in April- September this fiscal, a plunge of 53 per cent from the year- ago period, mainly due to volatile equity markets and uncertainties in macro environment.

Some analysts believe that the IPO market for the second half of the ongoing financial year will be poor as the secondary market would continue to be choppy on account of high crude price, depreciating rupee and tariff war between US and China.

However, others are of the view that concerns related to IPO market may be over- rated as the underlying consumption demand continues to remain buoyant.

According to the latest data compiled from stock exchanges, 10 companies garnered ` 12,470 crore through their respective IPOs in April- September of the current fiscal, much lower than a record ` 26,720 crore raised by 19 companies in the year- ago period.

In the first half of 2016

17, 15 companies had

raked in ` 16,535 crore through the route.

Proceeds of the initial public offer ( IPO) were used to fund business expansion plans, pay debt, meet working capital requirements and for other general corporate purposes.

By taking the IPO route, companies achieved the benefits of listing as well as enhanced their brand name and provided liquidity to the existing shareholders.