There is more money riding the corporate sector in equity sales again, showing that capital raising is perking up after an economic downturn jammed the brakes last winter. The trend turned bullish in April and picked up after the polls.
Rights issues, initial public offers (IPOs), follow-on public offers (FPOs) and placements with qualified institutional investors (QIPs) grew more than 13 times in the April-June quarter from a quarter earlier.
January and February had seen no activity. Rights issues totalling about Rs 669 cr, QIPs for Rs 9,079 cr, IPOs for Rs 302 cr and FPOs for Rs 23 cr marked the Jan-June period total of Rs 10,072 cr. Of this, about Rs 9,500 cr happened in the three months to June. “We have seen positive signs on economy, but it is too early to take a firm directional view,” said Rajnikant Patel, president, Reliance Money.