InvestorQ : How has been the overall capital raising by Indian companies in the month of March 2021?
Lavanya Subramanian made post

How has been the overall capital raising by Indian companies in the month of March 2021?

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Anamika Sodhani answered.
3 weeks ago
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Even as most of us are focused on IPOs, there has been a lot of capital raised in Indian markets through other equity sources. Here are some highlights.

· Even as March 2021 was a sort of a blockbuster month for IPOs, other equity transactions like QIP placements and follow-on offerings have not lagged too much.

· Most of the Indian companies that can raise capital are surely making a dash to raise capital before year-end fearing rising cases could again cloud the market.

· Just to give you a picture, around 5 companies in India have raised a sum of over Rs.9,300 crore via qualified institutional placements or QIPs in the month.

· In addition, existing investors and promoters divested equity holdings worth Rs.14,200 crore through the route of block deals and OFS.

· Some key transactions included BPCL treasury shares worth Rs.5,525 crore and the sale of 4.3% in SBI Life by Carlyle for a sum of Rs.3944 crore.

· Godrej Properties, which has been under pressure, did a QIP fund raising worth Rs.3750 crore during the month of March 2021.

· We could see more fund raising from small and mid-cap companies which are desperate for funds to retire debt. Of course, that will need better market sentiments.

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