Dun & Bradstreet India’s Leading BFSI Companies 2017

The cumulative resource mobilisation in equities (public and rights issues) in FY16 stood at ` 240.6 bn from 87 issues. This was more than twice the ` 97.9 bn raised in FY15 via 64 issues. Of the total resource mobilisation comprising equity and debt, the share of public issues increased to 84.1% in FY16 from 64.8% in FY15. On the other hand, the share of rights issues contracted to 15.9% from 35.2% in FY15. The share of debt issues in the aforementioned component of resource mobilisation stood at 58.6%.

Resource Mobilisation (all amounts in ` bn)

FY12

FY13

FY14

FY15

FY16

Particulars

Nos

Amt

Nos

Amt

Nos

Amt

Nos

Amt

Nos

Amt

1. Public Issues (i+ii)

55 461.1

53 235.1

75 510.8

70 124.5

95 489.3

i. Public Issues (Equity/PCD/FCD)

35 104.8

33 65.3

40 86.9

46 30.4

74 148.2

IPOs

34 59.0

33 65.3

38 12.4

46 30.4

74 148.2

of which through SME platform

0

0.0

24

2.4

37

3.2

39

2.8

50

3.8

FPOs

1 45.8

0

0.0

2 74.6

0

0.0

0

0.0

ii. Public Issues (Bond / NCD)

20 356.1

20 169.8

35 423.8

24 94.1

21 341.1

2. Rights Issue

16 23.8

16 89.5

15 45.8

18 67.5

13 92.4

Total Equity Issues (1(i) + 2)

51 128.6

49 154.8

55 132.7

64 97.9

87 240.6

A. Total Equity & Bond (1+2)

71 484.9

69 324.6

90 556.5

88 192.0

108 581.7

B. QIP

16 21.6

45 160.0

17 136.6

51 291.0

24 145.9

C. Preferential Allotments

311 257.1

420 469.4

411 464.6

419 282.6

333 499.2

D. Private Placement of Corporate Debt

1,953 2,612.8 2,489 3,614.6 1,924 2,760.5 2,611 4,041.4 2,975 4,580.7

Total (A + B + C + D)

3,376.4

4,568.6

3,918.3

4,807.0

5,807.5

Source: SEBI, Dun & Bradstreet Research

IPOs receive overwhelming response in FY16 FY16 witnessed 74 IPOs to raise ` 148.2 bn, as against merely 46 to raise ` 30.4 bn in FY15. Of these 74 IPOs, 50 were listed on the SME platform. The non-SME IPOs that opened during the year received a massive response. Of the 24 such IPOs that were issued during the year, seven were oversubscribed more than 20 times, three were oversubscribed 30-40 times, while one was oversubscribed a whopping 70-80 times. In FY13, SEBI had permitted the setting up of separate dedicated platforms for the listing and trading of SME securities, in order to provide an impetus to the SME sector. Although the quantum of capital raised through the SME platforms is still minuscule, the number of issues has been steadily increasing. Private placement accounts for 78.9% of overall resource mobilisation in FY16 In FY16, the private placement of corporate debt accounted for a whopping 78.9% of the overall resource mobilisation by Indian corporates (equity, bonds, QIP, preferential allotments and private placement of corporate debt taken together). The funds raised by private placement increased by 13.3% during the year to an all-time high of ` 4,580.7 bn. In terms of numbers, 2,975 issuances were made in FY16 as compared to 2,611 in the preceding year. Private placement of corporate bonds is a mode of resource mobilisation that has been increasingly used by corporate entities in recent years. These funds are raised mainly for expansion of business plans and to support working capital requirements.

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