07-09-2012, 10:08 AM
Current scenario of primary market in India
CS primary mkt..pptx (Size: 1.46 MB / Downloads: 43)
Meaning of Primary Market :
new issue market
securities are issued directly to investors
used by companies for the purpose of setting up new
ventures/business or for expanding or modernizing the existing
business.
performs the crucial function of facilitating capital formation in the economy.
governed by the provisions of the Companies Act, 1956,
which deals with issues, listing, and allotment of securities.
Mobilisation via primary market dismal in FY12(Financial Express, Mar 29, 2012)
Nearly Rs.24,000 crore was raised by way of initial public offerings (IPOs) and follow-on public offerings (FPOs) in FY12 i.e. almost half of Rs.46,267 crore mobilised in the preceding year.
MCX IPO May Revive Primary Market:
The Multi Commodity Exchange's (MCX) ongoing IPO may mark the revival in sentiments for the primary market after a months-long dry period.
The MCX IPO, estimated to raise Rs 663 crore, also happens to be the first public offer of 2012 in the Indian market and has already attracted bids worth over Rs 1,300 crore
The first ever public offer by an Indian bourse also indicated towards an end to a long-running lull in the primary market, which has remained mostly weak for many months now.
It is perhaps the first big issue since Coal India and MOIL in the recent times.
The number of IPOs during the period was 37 as against 57 IPOs during FY11.
PSUs and PSU banks raised Rs.17,453 crore or 73% of the total amount compared with R27,537 crore raised by them in FY11.
Amount of capital mobilized through private placement in corporate debt in 2011-12 has also reduced as compared to 2010-11.
Trends in Primary Market
The issuers mobilize resources through public issues and private placements.
The resources that are raised by corporates and the government from domestic as well as international markets decreased by 15 percent as compared to the figures for the previous year.
The resources mobilized in 2010–2011 amounted to Rs. 8,561,863 million as against Rs.10,083,446 million in 2009–2010.