Stock market data is reflected on the glasses of a trader. (Photographer: Dimas Ardian/Bloomberg)

Companies Raise More Than Rs 84,300 Crore Via IPOs In FY18

Indian companies garnered Rs 84,357 crore through initial share sales in 2017-18, registering a nearly three-fold jump compared to the preceding fiscal, says a report.

According to the study by PRIME Database, the amount raised by firms through the initial public offer route stood at Rs 29,050 crore during 2016-17.

"2017-18 was the best year ever for the IPO market by far, the previous high being in 2007-08 when Rs 41,323 crore was raised, less than half of the amount raised in 2017-18," said Pranav Haldea, Managing Director, PRIME Database.

While there were 45 main-board IPOs during 2017-18 collectively raising Rs 82,109 crore, the preceding fiscal saw 25 of them together garnering Rs 28,225 crore.

As per the report, the largest initial share sale was from state-owned General Insurance Corporation of India for Rs 11,257 crore and the average deal size stood at Rs 1,825 crore.

Among the main-board IPOs, the issue of Salasar Techno Engineering received the best response with a subscription of 270 times, followed by Astron Paper & Board Mill at 241 times and Apollo Micro Systems at 176 times.

During 2017-18, there were 155 SME IPOs raising Rs 2,247 crore compared to 80 in the previous fiscal garnering Rs 825 crore.

The largest SME IPO in 2017-18 was from East India Securities (worth Rs 88 crore), the report said.

"2018-19 is likely to see more volatility in the secondary market which shall affect fund raising plans of companies as well.