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FY17 a year of 15 mega IPOs, buybacks & record high divestments
Updated on 31 Mar 2017
Financial year 2017-18 is ending on a high note.
The benchmark indices hit new highs, and the primary market observed a euphoria, wherein 15 of the 25 IPOs that hit the Dalal Street during the year witnessed over 10 times subscription. On top that, 18 of the 23 debutants on stock exchanges, jumped over 10 per cent on the listing day.
Record disinvestment by the government and sizzling buybacks were the other highlights for the year.
The amount raised via IPOs nearly doubled to Rs 29,018 crore in FY17 compared with Rs 14,811 crore in FY16, but the number fell short of Rs 41,323 crore, which companies mobilised in FY08.
The retail participation during the year was also heartening.
As many as 15 IPOs, including Advanced Enzyme (81.54 times), Quess Corp (80.92 times) and the recently concluded Avenue Supermarts (73.32 times) received over 10 times retail subscription, while individual investor participation in Avenue Supermarts (17.40 lakh applications), BSE (11.32 lakh) and Larsen & Toubro Infotech (10.25 lakh) was also encouraging.
A total of 78 SME IPOs, meanwhile, fetched Rs 807 crore in FY17 compared with 50 IPOs raising Rs 311 crore in FY16.
The year also saw Rs 40,997 crore in disinvestment proceeds, which was highest ever, even as it stood 90 per cent of the revised targeted amount of Rs 45,500 crore and 73 per cent of the original target of Rs 56,500 crore for the year.
Buybacks by PSUs including Coal India, Nalco, MOIL and NMDC generated Rs 15,645 crore (38 per cent), block deals in L&T and ITCBSE 0.75 % on SUUTI's stake sales worth Rs 8,790 crore (21 per cent), CPSE ETF at Rs 8,500 (21 per cent) and OFS of NHPC, Hindustan Copper, NBCC among others at Rs 7,532 crore (18 per cent) led the buyback segment.
Meanwhile, buyback news from a couple of IT firms including TCS and HCL Technologies too hogged the limelight.