TRENDS IN THE PRIMARY MARKETS
The primary market experienced a major boom after the initiation of the reforms process. This can be seen from the ten-fold increase in the number of public issues from 141 in 1990-91 to 1428 issues in 1995-96. The total capital mobilized also witnessed a seven-fold increase from RS.I, 704.35 cr. to Rs.lI, and 822.18 cr. during the same period.
However, there has been a sharp fall in the market both in terms of number of public issues and amount mobilized after 1995-96. The number of issues had drastically fallen from 1428 in 1995-96 to 62 in 1997-98. The capital raised had also fallen from Rs.ll, 822.18 cr. in 1995-96 to RS.3, 061 cr. in 1997-98.
This downward trend in the capital mobilization in the primary market continued till the end of 1997-98, and was reversed in 1998-99. During 1998-99, the total amount of capital raised through public issues rose steeply to RS.5,018.9 cr. from RS.3,061.00 cr. While the amount mobilized increased by nearly 64 percent during 1998-99, the number of public issues, entering the market declined sharply to 32 from 62 during the same period.
The average size of the issue during 2000-01 was RSAOA4 cr., as against RS.84.05 cr., in 1999-00 and RS.231.56 cr., in 1998-99. This implies that companies on an average made issues of a size larger than the previous year.
The primary market experienced a major boom after the initiation of the reforms process. This can be seen from the ten-fold increase in the number of public issues from 141 in 1990-91 to 1428 issues in 1995-96. The total capital mobilized also witnessed a seven-fold increase from RS.I, 704.35 cr. to Rs.lI, and 822.18 cr. during the same period.
However, there has been a sharp fall in the market both in terms of number of public issues and amount mobilized after 1995-96. The number of issues had drastically fallen from 1428 in 1995-96 to 62 in 1997-98. The capital raised had also fallen from Rs.ll, 822.18 cr. in 1995-96 to RS.3, 061 cr. in 1997-98.
This downward trend in the capital mobilization in the primary market continued till the end of 1997-98, and was reversed in 1998-99. During 1998-99, the total amount of capital raised through public issues rose steeply to RS.5,018.9 cr. from RS.3,061.00 cr. While the amount mobilized increased by nearly 64 percent during 1998-99, the number of public issues, entering the market declined sharply to 32 from 62 during the same period.
The average size of the issue during 2000-01 was RSAOA4 cr., as against RS.84.05 cr., in 1999-00 and RS.231.56 cr., in 1998-99. This implies that companies on an average made issues of a size larger than the previous year.