Fundraising via public issues doubled last fiscal

The finance ministry on Wednesday said fundraising through public and rights issues surged 115 per cent and 15 per cent, respectively, in 2020-21 despite the uncertainty owing to the Covid-19.

In terms of numbers, FY21 witnessed 55 initial public offerings (IPO) and one followon public offer (FPO), the ministry said in a statement.

In the fiscal year, 21 rights issues were successfully completed as against 17 in the previous year, it added.

“During 2020-21, ~46,029.71 crore and ~64,058.61 crore were raised through public issues and rights issue, respectively, as against ~21,382.35 crore and ~55,669.79 crore raised last year. This is an increase of 115 per cent and 15 per cent, respectively, in 202021 as compared to last year,” the ministry said. Similarly, around 2003 issues of corporate bonds for an amount of ~7,82,427.39 crore happened in 2020-21, surpassing the amount raised (~6,89,686.19 crore) through 1,821 issues for the fiscal year 2019-20, it noted.

Thus, it said, while the number of issues increased by 10 per cent in 2020-21, the amount raised increased by 13.5 per cent as compared to the previous financial year.

Indian capital market has shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic, it said, adding assets under management (AUM) of mutual fund industry increased by 41 per cent from ~22.26 trillion as on March 31, 2020, to ~31.43 trillion as on March 31, 2021.

The number of unique investors across mutual fund schemes also increased by 10 per cent from 2.08 crore as of March 31, 2020, to 2.28 crore as of March 31, 2021.

With the increasing expansion of the mutual fund industry in smaller cities, the AUM from below the top 30 cities increased by 54 per cent from ~3,48,167 crore as of March 31, 2020, to ~5,35,373 crore as of March 31, 2021, the ministry said.