Fundraising through public issues more than doubled in FY21
Public issues: The Finance Ministry on Wednesday said fundraising through public and rights issues surged 115 percent and 15 percent, 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.
Moreover, during 2020-21, Rs. 46,029.71 crores and Rs. 64,058.61 crores were raised through Public Issues and Rights Issue, respectively. As against Rs. 21,382.35 crores and Rs. 55,669.79 crores raised last year. This is an increase of 115 percent and 15 percent, respectively, in 2020-21 as compared to last year, the ministry said.
Likewise, around 2003 issues of corporate bonds for an amount of Rs. 7,82,427.39 crores happened in 2020-21. While surpassing the amount raised (Rs. 6,89,686.19 crores) through 1,821 issues for the fiscal year 2019. Thus, it said, while the number of issues increased by 10 percent in 2020-21. The amount raised increased by 13.5 percent as compared to the previous financial year.
Mutual Fund Industry:
On the other side, the 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 the mutual fund industry increased by 41 percent from Rs. 22.26 lakh crores as of March 31st, 2020, to Rs. 31.43 lakh crores as of March 2021. The number of unique investors across mutual fund schemes also increased percent from 2.08 crore as of March 31st, 2020, to 2.28 crore as of March 31st.
While increasing expansion of the mutual fund industry in smaller cities, the AUM from below the top 30 cities increased by 54 percent from Rs. 3,48,167 crores as of March 31st, 2020, to Rs. 5,35,373 crores as of March 31st, 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 31st, 2021, it added.
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