2021 has been an impressive year for the Indian primary markets, with highest ever fundraising in a calendar year. And the momentum could well continue in FY23. According to a note by Prime Database, 54 companies plan to raise a massive 1.4 trillion rupees in the upcoming fiscal year, including the much awaited LIC IPO. These 54 companies already have market regulator Securities and Exchange Board of India’s (Sebi’s) approval for raising the money. Another 43 companies, the note said, are looking to raise about 81,000 crore rupees where Sebi approval is still awaited. The amount raised in FY22, according to Pranav Haldea, managing director, PRIME Database Group was over 3.5 times 31,268 crore rupees raised through 30 IPOs in 2020-21.
The previous best year was 2017-18 (FY18) when 81,553 crore rupees was raised. According to Pranav Haldea, managing director of PRIME Database, IPOs from new-age loss-making tech startups, strong retail participation and listing gains were the other key highlights of 2021-22. But, public equity fundraising dropped to 1.70 trillion rupees from 1.9 trillion rupees in the preceding year. The largest IPO in 2021-22, which was also the largest Indian IPO ever, was of One 97 Communications (PayTM) for 18,300 crore rupees. Some of the other prominent ones included Zomato, Star Health, PB Fintech, Sona BLW and FSN E-Commerce, the parent company of Nykaa. And retail investors were a force to reckon with. The average number of applications from the retail category was 14.05 lakh, the Prime Database report said, in comparison to 12.73 lakh in 2020-21 and 6.88 lakh in 2019-20. The highest number of applications from retail in 2021-22 was for Glenmark Life Sciences, Devyani International and Latent View. Going ahead, analysts expect the secondary market to remain choppy due to the geopolitical crisis between Russia and Ukraine. This, they feel, will have repercussions for the primary market activity as well. G Chokkalingam, founder and chief investment officer at Equinomics Research, for instance, expects the Sensex to remain in the range of 56,000 to 57,000 till a solution is found for the Ukraine – Russia war.