Fresh issue portion in IPOs at a decade low on high private equity exits

The next capex cycle may turn the tide, say experts

Topics
initial public offerings IPOs | stock market trading

Sundar Sethuraman  |  Thiruvananthapuram 

Initial public offerings (IPOs) this year resulted in minimal fresh capital formation. Though funds raised through IPOs more than doubled in 2020, most of the money was used to provide an exit to existing shareholders, promoters, and private equity (PE) investors.

Of the Rs 26,611 crore raised through IPOs in 2020, the fresh issue portion was a mere Rs 3,531 crore, or 13 per cent — the lowest in 10 years. Since 2017, three-fourths of IPO fundraises have comprised secondary share sales. Experts said most companies making their debuts these days are asset-lite businesses backed ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, December 31 2020. 06:10 IST
RECOMMENDED FOR YOU
.