Corporates raised all-time high amount of Rs. 1.89 lakh crore in FY21 through public equity markets: SBI report
- IBEF
- February 18, 2022
According to an SBI researcher's analysis, India is again seeing a restored positive trend in private investment across key indicators of corporate health after witnessing the pandemic. Corporates are maintaining balance sheets in shape, whether it's deleveraging, saving cash, mobilising capital through the equity market, or increasing promoters holding. Despite being overshadowed by the epidemic, Indian corporations raised an all-time high of Rs 1.89 lakh crore (US$ 25.17 billion) through public equity markets in FY21, more than doubling the amount raised in FY20 of Rs 91,670 crore (US$ 12.21 billion).
The report's primary findings on private investment are as follows:
- From roughly 50% a year ago, private participation in investment announcements grew to 70%. This points to a resurgence in capex as well as an improvement in credit ratios across the board.
- In the first nine months of FY22, new investment announcements surged from Rs 10 trillion (US$ 133.2 billion) in the previous two years to Rs 12.78 trillion (US$ 170.25 billion).
In the first nine months of FY22, credit ratios (upgrades to downgrades) improved compared to the same period last year, particularly in the cement, energy, telecom, and NBFC sectors. There were also new announcements in a variety of industries, including highways, real estate, iron and steel, and non-conventional power. Promoter shareholding in over 1,000 NSE-listed corporations climbed to 56.7% at the end of December 2021, up from 53% in March 2020. Finance, textiles, trading, chemicals, and pharmaceuticals are among the industries experiencing rising promoter shareholding.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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