Bonds pip shares: cos raise R 71k cr in ’13-14

MUMBAI: Indian companies mopped up ` 71,370 crore through public markets in financial year 2013-14, a 13% rise from ` 63,056 crore raised in the previous year, according to data released by capital issue tracker Prime Database on Monday.

The funds were raised through various routes including initial public offers (IPO), follow-on public offers (FPO), offers for sale (OFS), institutional placement programme qualified institutional placement and bonds.

Out of the total amount only ` 29,381 crore was raised through equity, 36% lower than ` 46,073 crore raised in 2012-13.

Pranav Haldea, managing director, Prime Database, said that the amount could have been much better had several public sector disinvestments, originally scheduled to be done through IPOs, not been made through alter native routes (such as share buybacks, block deals, sales to other PSUs and exchange traded funds) and also if there was less volatility in the secondary market through most of the year.

In comparison to equity, the year saw more activity in the public bonds market. As many as 35 issues raised ` 41,989 crore, a steep 147% hike from ` 16,982 crore garnered last year through 20 issues.

“This market was initially monopolised by NBFCs (nonbanking finance companies), but towards the later part of the year, the investors also witnessed tax-free bonds issuances from government companies,” added Haldea.

Unstable economic climate and a volatile secondary market resulted in a bad year for initial public offers as well.

There was only one mainboard IPO, of Just Dial, which was successful, raising ` 919 crore, compared with nine main-board IPOs in the preceding year mobilising ` 6,289 crore.