BSE Stays No. 1 Choice As India Inc. Raises Record Funds During Pandemic

Asia’s oldest exchange remains the preferred choice for fundraising as Indian companies mopped up record capital in the pandemic-ravaged fiscal.

India Inc. raised Rs 32.57 lakh crore through stock exchanges in 2020-21, according to data shared by the country’s two largest bourses. This includes funds raised via equity, bonds, real estate and infrastructure investment trusts, and commercial paper.

BSE Ltd. cornered more than half of this fundraising blitz as India Inc. raised cash to tide over the disruption caused by the pandemic and the first economic contraction in four decades.

Fundraising on BSE rose 53% over the previous year. For the National Stock Exchange, India’s largest bourse, it increased 30.8%.

BSE has been the dominant exchange for debt and secondary equity fundraise.

Companies raised Rs 28.55 lakh crore via bonds and commercial paper in the last fiscal, accounting for 87.67% of total capital raised. BSE had a 52.8% share in bond issuances and 58.3% via commercial paper.
The exchange also saw interest from cities seeking to raise funds via municipal bonds.
Companies raised Rs 3.35 lakh crore last fiscal by selling equity shares. BSE accounted for 56.5% of it.
A total of Rs 37,770 crore was raised via InvITs and REITs; BSE was ahead of NSE here too.