Share of fresh capital was just 17.4% in 2017, offer for sale mechanism was 82.6%

Money raised through fresh capital stood at its lowest level in 2017 since 2012.

By Niti Kiran  
Thursday, December 21, 2017

There is no denying that year 2017 saw a flood of initial public offers (IPOs) with 36 issues till date that has raised the highest ever amount of Rs 67,140.6 crore. But what comes as surprise is that only 17.4 per cent of this amount has been used for a firm's growth and expansion, rest all have gone to the promoters and other existing shareholders.

A closer look at the break-up of the issues reveals that the share offer for sale mechanism dominates with 82.6 per cent - the highest share of this mechanism at least over a decade. With this share of fresh capital was restricted to just 17.4 per cent in 2017.  Money raised through fresh capital used to dominate the IPOs in most of the years before 2012 - the share was 98.1 per cent in 2011 but has been gradually declining since then and stood at its lowest level in 2017 (till date).

Hope to see some revival next year with improving micro and macro numbers in the economy.

 

Related Stories

Crude oil falls a bit as Saudi and Russia quietly agree output rise, US stocks swell
Crude oil falls a bit as Saudi and Russia quietly agree output rise, US stocks swell

Latest Stories

Thugs of Hindostan Box Office collection Day 9: Aamir Khan-starrer continues to lose steam in its second week
Thugs of Hindostan Box Office collection Day 9: Aamir Khan-starrer continues to lose steam in its second week
US firm names Noida-based IT consultancy in Rs 14 crore fraud
US firm names Noida-based IT consultancy in Rs 14 crore fraud
Trai seeks public view to make paper telephone bill optional
Trai seeks public view to make paper telephone bill optional
SPONSORED