FY21 is shaping up to be a record year for equity offerings. Foreign portfolio investors (FPIs) have been one of the drivers of this trend especially in the primary market.
Getty ImagesAt $1.3 billion, FPI purchases accounted for 43.5% of total equity inflow of $ 2.8 billion (Rs 21,831 crore) in June 2020.
Fund raising by India Inc through share sales in the primary or secondary market hit a purple patch in the first quarter 20/21. India Inc raised Rs 1.15 lakh crore in first three months of the year compared with Rs 1.53 lakh crore in entire FY20 and Rs 1.33 lakh crore in FY19.
The numbers -- share sales here denote both primary and secondary sales -- is likely to increase as Rs 25000 crore worth of equity offerings are slated to be raised in next few months by the likes of Axis Bank, Tata Power, Mahindra & Mahindra Finance, PVR and others.
FY21 is shaping up to be a record year for equity offerings. Foreign portfolio investors (FPIs) have been one of the drivers of this trend especially in the primary market. At $1.3 billion, FPI purchases accounted for 43.5% of total equity inflow of $ 2.8 billion (Rs 21,831 crore) in June 2020. This was also the second highest 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 45973 crore) in the secondary market since the beginning of 2020.
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