Financial Service Sector Leads Fiscal 2024 With 20.5% Of Rs 83,092 Crore Raised: SEBI Report
The report highlighted a strong year for primary markets, with both capital mobilisation and the number of listed companies seeing significant growth.
Financial services led the way in resource mobilisation, accounting for 20.5% of the total funds raised through public and right issues of equities in fiscal 2024, according to a report by the Securities and Exchange Board of India. The capital goods and healthcare segments followed with 14.6% and 13.5% of the total funds raised in the previous fiscal.
The report highlighted a strong year for primary markets, with both capital mobilisation and the number of listed companies seeing significant growth. Firms raised Rs 83,092 crore in fiscal 2024, a 26.23% growth from a year earlier.
During this period, India emerged as a standout performer globally in terms of the number of initial public offerings. Fundraising through public issues increased by 15% compared to the previous year, driven by optimism in India's growth trajectory, resilient economic activities, strong corporate earnings, and rising investor participation.
The number of newly listed companies surged to 272 in fiscal 2024 from 164 in the previous financial year. This included a record number of listings from small and medium enterprises. Main board IPOs nearly doubled, reaching 76 in 2023–24, with the issue's median size of Rs 597 crore, slightly lower than the Rs 635 crore median size in 2022–23.
During 2023–24, 338 private sector companies accessed the primary markets, compared to 237 in the previous year, while only two companies were from the public sector, according to the SEBI report. Private sector companies accounted for 96.8% of the total resource mobilisation. 55 issues larger than Rs 500 crore mobilised 84.0% of the resources, totalling Rs 66,672 crore.
Uptrend In SME Platform
The small and medium enterprises platform witnessed a remarkable uptrend both in terms of the number of companies listed and the amount raised in 2023–24 compared to 2022–23.
During 2023–24, 196 companies were listed on the SME platform, raising Rs 6,095 crore, which is more than 2.5 times the amount raised in 2022–23. The average issue size in 2023–24 was Rs 31.1 crore, compared to Rs 18.7 crore in 2022–23. Investor enthusiasm and participation in SME IPOs during 2023–24 breached past levels.
The weighted average of the number of subscriptions (weights being issue size) to SME IPOs increased by almost 2.4 times, from 51.7 times during 2022–23 to 122.2 times during 2023–24, the report said.
During 2023–24, out of 196 issues listed on the SME platform, two issues were of issue size less than Rs five crore, 22 issues were of issue size of Rs five crore or more but less than Rs 10 crore, 77 issues were of issue size of Rs 10 crore or more but less than Rs 25 crore, and 95 issues were of issue size of Rs 25 crore or more.
A total of 30 companies—11 companies at NSE and 19 companies at BSE—migrated from the SME platform to the main board, compared to 58 companies—25 companies at NSE and 33 companies at BSE—in the previous year.
