Small and medium enterprises lead the equity issuance surge
In the first two months of the current fiscal year, corporates have raised a substantial amount of over Rs. 84,866 crores through various equity offerings. Leading this trend were initial public offerings (IPOs) from small and medium enterprises (SMEs), with 44 such companies listing on the stock exchanges in April and May.
As per data from the securities market regulator SEBI, a total of 21 SMEs embarked upon their public market journeys through IPOs in April, raising Rs. 527 crores collectively. In May as well, 23 SME issuances helped pool in Rs. 673 crores. This comes at a time when concerns were raised about possible manipulation in SME listings and trading.
Some of the notable SMEs that conducted successful IPOs include ABS Marine Services, Trust Fintech, Creative Graphics Solutions India and Quest Laboratories. All these newly listed SMEs witnessed high retail investor interest and were listed at a premium to their issue prices.
In addition to the strong SME activity, bigger companies also pursued the public markets. 8 mainboard IPOs in the first two months added Rs. 14,661 crores to the kitty. Leading financial inclusion initiatives like Aadhaar Housing Finance and Go Digit General Insurance were notable mainboard floats.
Overall, through various means like IPOs, rights issues, qualified institutional placements, private debt placements etc., Indian businesses have raised a massive Rs. 84,866 crores from the capital markets from April to May 2024. This matches the record-breaking totals raised throughout the previous fiscal year. With continued economic and political stability, the equity issuance pipeline remains robust.
