Of the Rs 67,000+ crore that was raised, Rs 50,000 crore is from financial service companies. There’s one more anomaly that jumps out, which is the domination of financial services companies. That’s good news, but a different sort of good news than the simple IPOsdoing-great news that it appears to be at first sight. So what starts out looks like an exceptional year for fund-raising, is actually a year in which the government reached a historic high point in the efficiency with which it divested equity owned by it.
#Boom 2 app crashes 2017 plus#
Add to that the Rs 23,000+ crore the government raised through the non-IPO route of the Bharat-22 Exchange Traded Fund (ETF), block deals to sell L&T and ITC stocks, and a few other routes, one finds that the government dominates fundraising for the year withRs 73,000+ plus crore. This IPO number reflects the best effort that the government has made at divesting PSU stock.Īs much as Rs 33,000 crore of this number are IPOs that government-owned companies conducted. When one looks at the actual companies, promoters and industries that make up this impressive numbers, then the situation is a bit more complicated. However, a closer look reveals a somewhat nuanced picture. Such numbers are great news for capital markets investors and the economy.
In fact, this year’s IPO investment was higher than the total cumulative collection of 2011-2016! In the past ten years, the second highest such collection was just Rs 37,000+ crore, which means that 2017 was 80 per cent higher than the second ranked year. Now, we find that the year has turned out to be an all-time champion in collecting money from the public.Ī total of Rs 67,000+ crore has been collected in IPOs during 2017.
At that time, in October, about Rs 40,000+ crore of IPO were already done. A couple of months ago, I’d written about how 2017 is shaping up to be an IPO heavy hitter.
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