Fundraising through public issues more than doubled in fiscal 2021

The Ministry on Wednesday said fundraising through public and rights issues surged 115 per cent and 15 per cent, respectively, in 2020-21 despite the uncertainty due to the COVID-19 pandemic.

In terms of numbers, FY21 witnessed 55 initial public offerings (IPO) and one follow-on public offer (FPO), the ministry said in a statement.

In the fiscal, 21 rights issues were successfully completed as against 17 in the previous year, it added.

“During 2020-21, Rs 46,029.71 crore and Rs 64,058.61 crore were raised through Public Issues and Rights Issue, respectively, as against Rs 21,382.35 crore and Rs 55,669.79 crore raised last year. This is an increase of 115 per cent and 15 per cent, respectively, in 2020-21 as compared to last year,” the ministry said.

Similarly, around 2003 issues of corporate bonds for an amount of Rs 7,82,427.39 crore happened in 2020-21, surpassing the amount raised (Rs 6,89,686.19 crore) through 1,821 issues for the fiscal year 2019-20, it noted.

Thus, it said, while the number of issues increased by 10 per cent in 2020-21, the amount raised increased by 13.5 per cent as compared to the previous financial year.

Indian capital market has shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic, it said, adding assets under management (AUM) of mutual fund industry increased by 41 per cent from Rs 22.26 lakh crore as on March 31, 2020, to Rs 31.43 lakh crore as on March 31, 2021.

The number of unique investors across mutual fund schemes also increased by 10 per cent from 2.08 crore as of March 31, 2020, to 2.28 crore as of March 31, 2021.

With the increasing expansion of the mutual fund industry in smaller cities, the AUM from below the top 30 cities increased by 54 per cent from Rs 3,48,167 crore as of March 31, 2020, to Rs 5,35,373 crore as of March 31, 2021, the ministry said.

Investors in the mutual fund industry may choose to invest in any of the 1,735 schemes across categories as per their investment objective as of March 31, 2021, it added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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

Source link

Free Course

"Double Your Traffic in 30 days" + Secret Bonus

valued at $299

This amazing course will teach you, step by step, how to double if not triple your traffic over the next 30 days.

100% Privacy. We will never spam you!