11 Jul , 2024 By : Debdeep Gupta
In the last 15 months, Initial Public Offerings (IPOs) have raised Rs 80,000 crore, but only 14 percent of this is growth capital i.e funds were used for capex (manufacturing firms) and for enhancing lending capabilities(financial companies) said Ashish Gupta, chief investment officer at Axis Asset Management, in a note.
Around 61 percent of the capital raised was offered for sale from private equity investors and promoters and the remaining 25 percent was used for general corporate purposes, working capital, and debt reduction.
In the last 15 months, 91 IPOs have raised Rs 80,000 crore. The number of IPOs doubled from 37 in FY23 to 76 in FY24.
In Q1FY25 alone, 15 companies have gone public, and over 45 have filed their DRHPs with the regulator.
Apart from IPOs, Qualified Institutions Placement (QIPs) have picked up pace since FY24 with more than Rs 1,00,000 crore mobilized through QIPs and Follow-up Public Offers (FPOs).
The note also said that private equity exits have been mostly via public markets. Gupta also said that private equity funds have reaped the most benefits from rising equities.
It said, that in the last 15 months, they have sold shares worth Rs 1.1 lakh crore in the secondary market, in addition to the shares they sold during IPOs. This rapid selling by private equity funds has contributed to a decrease in net foreign direct investment (FDI). Over the past few years, FDI outflows have increased from Rs 2.2 lakh crore to Rs 3.4 lakh crore.
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