COIMBATORE: Fund-raising from
equity
markets fell 68% y-o-y to Rs 56,440 crore in FY19 due to the poor show by IPOs. The slump comes after a robust performance in FY18 when fund-raising from equity markets and IPOs hit a record high.
Funds mobilised through IPOs plunged 81% y-o-y to Rs 16,294 crore in 2018-19. The response to IPOs was affected by poor listing performance, said Pranav Haldea, managing director, PRIME Database. Of the 13 IPOs which got listed (RVNL is yet to be listed), only two gave a return of over 10% (based on the closing price on listing date). HDFC Asset Management gave a robust return of 65% and was followed by RITES at 15%.
Fund-raising in 2019-20 would be significantly impacted by the outcome of the general elections, Haldea said.
M Allirajan writes for the business section of The Times of India...
Read MoreM Allirajan writes for the business section of The Times of India. He has been tracking mutual funds and markets for nearly four years. Having worked in a business newspaper and a business magazine tracking the emerging trends in business and developments in corporate India, he believes in giving straight, simple and reader friendly content. When not following markets and developments in the mutual funds space, he reads books and listens to music.
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