primary market: Primary market mopped up Rs 1.4 lakh crore in FY22: RBI report

In the financial year 2021-22, the primary markets mobilized funds worth Rs 1.39 lakh crore, 26.1 per cent higher than Rs 1.1 lakh crore in the previous fiscal year, said the annual reports from the Reserve Bank of India.

The central bank, in its report, said that this includes all the primary market activities, including initial public offering (IPOs), follow-on public offerings (FPOs) and rights issues. This also includes all issues by mainboard and SME players.

In FY21-22, 121 IPOs and FPOs mobilized Rs 1.13 lakh crore. Out of this, Rs 958 crore were mopped up by 70 companies listed on the small and medium enterprises (SMEs) platform of the BSE and the NSE.

On the contrary, resources mobilized through rights issues decreased to Rs 26,327 crore during 2021-22 compared with Rs 64,059 crore during the previous year.

The interest of institutional investors also took a hit as the funds generated by qualified institutional placement (QIP) decreased to Rs 92,135 crore for the year ended March 2022.The number stood at Rs 1,19,678 crore during the previous year.

Despite the significant decline in the FPIs interested in the secondary markets, the overseas investors maintained their investment interest in the primary market segment, according to the report.

A large chunk of flows was diverted by FPIs from secondary to primary market during the November-December period when big-ticket initial public offering (IPO) issues hit the capital market, said the report.