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Fundraising for Public Issues & Rights Issues registered an increase of 115% and 15% respectively in FY21

Fundraising for Public Issues & Rights Issues registered an increase of 115% and 15% respectively in FY21
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Fundraising for Public Issues & Rights Issues registered an increase of 115% and 15% respectively in FY21

Highlights

Despite the uncertainty prevailing in FY 2020-21 (FY21) owing to the COVID-19 pandemic, fundraising for both public issues and right issues has...

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Despite the uncertainty prevailing in FY 2020-21 (FY21) owing to the COVID-19 pandemic, fundraising for both public issues and right issues has registered an increase of 115 per cent and 15 per cent in FY2020-21.

During FY21, funds of Rs 46,029.71 crore and Rs 64,058.61 crore were raised through Public Issues and Rights Issue respectively, compared to Rs 21,382.35 crore and Rs 55,669.79 crore raised in the previous financial year (FY20).

Ministry of Finance in a release said, "Fundraising in FY 2020-21 was better than that in FY 2019-20. During FY 2020-21, Rs. 46,029.71 crore and Rs. 64,058.61 crore were raised through Public Issues and Rights Issue respectively, as against Rs. 21,382.35 crore and Rs. 55,669.79 crore raised last year. This is an increase of 115 per cent and 15 per cent respectively in FY 2020-21 as compared to last year."

Corporate Bond Market

Around 2003 issues of Corporate Bonds for an amount of Rs 7,82,427.39 crore happened in FY2020-21. It surpassed the amount of Rs 6,89,686.19 crore which was raised through 1,821 issues for the fiscal year 2019-20. Thus, while the number of issues increased by 10 per cent in FY21, the amount raised increased by 13.5 per cent as compared to the previous financial year.

Mutual Funds

At the same time, the Indian capital market has also shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic. Assets under management (AUM) of the Mutual Fund Industry increased by 41 per cent from Rs 22.26 lakh crore as of March 31, 2020, to Rs 31.43 lakh crore as of March 31, 2021.

The number of unique investors across Mutual Fund schemes also increased by 10 per cent from 2.08 crore as of March 31, 2020, to 2.28 crore as of March 31, 2021. With the increasing expansion of the mutual fund industry in smaller cities, the AUM from below the top 30 cities increased by 54 per cent from Rs 3,48,167 crore as of March 31, 2020, to Rs 5,35,373 crore as of March 31, 2021.

Investors in the Mutual Fund industry may choose to invest in any of the 1,735 mutual fund schemes across categories as per their investment objective as of March 31, 2021.

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