The amount is likely to increase since equity offerings of Rs 25,000 crore are scheduled over the next few months by companies such as Axis Bank, Tata Power, M&M Financial Services and PVR. Foreign portfolio investors (FPIs) have been among the drivers, especially in the primary market.
Fund-raising by India Inc through share sales in primary and secondary markets hit a purple patch in the first quarter of FY21. Companies raised Rs 1.15 lakh crore in the quarter compared with Rs 1.53 lakh crore in all of FY20, and Rs 1.33 lakh crore in FY19.
The amount is likely to increase since equity offerings of Rs 25,000 crore are scheduled over the next few months by companies such as Axis Bank, Tata Power, M&M Financial Services and PVR. Foreign portfolio investors (FPIs) have been among the drivers, especially in the primary market.
At $1.3 billion, FPI purchases accounted for 43.5% of total equity inflows of $2.8 billion (Rs 21,831 crore) in June. This was also the secondhighest investment in the past 30 months. FPIs have bought $3.79 billion (Rs 27,459 crore) of equity in the primary market and sold $6.2 billion (Rs 45,973 crore) in the secondary market since the beginning of 2020. Rajesh Mascarenhas & Ashutosh R Shyam analyse the numbers.
