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IPO fund raising all-time high at Rs 1.18 lakh crore

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Sixty three Indian corporates raised an all-time high Rs 1.18 lakh crore through main board IPOs in calendar 2021.

This was nearly 4.5 times Rs 26,613 crore raised through 15 IPOs in 2020 and almost double of the previous best year 2017 in which Rs 68,827 crore was raised.

IPOs from new age loss-making technology startups, strong retail participation and huge listing gains were the key highlights, according to Pranav Haldea, Managing Director, Prime Database Group.

Overall public equity fundraising crossed the Rs 2 lakh crore mark to reach Rs 2.02 lakh crore in calendar 2021 which was higher than the previous highest amount of Rs 1.76 lakh crore in the preceding year.

The overall response from the public was very good. Of the 59 IPOs for which data is available as of now, 36 IPOs received a mega response of more than 10 times (of which 6 IPOs more than 100 times) while 8 IPOs were oversubscribed by more than 3 times. The balance 15 IPOs were oversubscribed between 1 to 3 times.

The year witnessed tremendous response from retail investors as well. The average number of applications from retail was 14.36 lakh, in comparison to 12.77 lakh in 2020 and 4.05 lakh in 2019. The highest number of applications from retail in 2021 was received by Glenmark Life Sciences (33.95 lakhs) followed by Devyani International (32.67 lakhs) and Latent View (31.87 lakhs).

The amount of shares applied for by retail was a huge 135 per cent of the IPO mobilisation (156 per cent in 2020). However, the total allocation to retail was Rs 24,292 crore which was just 20 per cent of the total IPO mobilisation (down from 32 per cent in 2020).

According to Haldea, success of the IPOs was further buoyed by strong listing performance. Of the 58 IPOs which have got listed thus far, 34 gave a return of over 10 per cent (based on closing price on listing date). Sigachi Industries gave a stupendous return of 270 per cent followed by Paras Defence (185 per cent) and Latent View (148 per cent), 40 of the 58 IPOs are trading above the issue price (closing price of 22nd December, 2021). Average listing gain was 32 per cent, in comparison to 44 per cent in 2020 and 19 per cent in 2019.

A total of 25 out of the 63 IPOs that hit the market had a prior PE/VC investment. Offers for sale by such PE/VC investors at Rs 24,106 crore accounted for 20 per cent of the total IPO amount. Offers for sale by promoters at Rs 31,704 crore accounted for a further 27 per cent of the IPO amount. On the other hand, the amount of fresh capital raised in IPOs in 2021 was a very high Rs 43,324 crore, which was greater than the last 8 years combined.

Anchor investors collectively subscribed to 39 per cent of the total public issue amount. FPIs played a dominant role as anchor investors, with their subscription amounting to 24 per cent of the amount followed by MFs at 11 per cent. Qualified Institutional Buyers (including Anchors Investors) as a whole subscribed to 69 per cent of the total public issue amount (data for 59$ companies for which QIB and anchor investors data is available as of now). FPIs, on an overall basis as anchors and QIB, subscribed to 30 per cent of the issue amount followed by MFs at 16 per cent.

The year 2021 also saw record number of filings with SEBI. As many as 115 companies filed their offer document with SEBI for approval. According to Haldea, to put this in context, 2019 and 2020 cumulatively had a total of just 50 filings.

Following from the record number of filings, the IPO pipeline continues to remain strong with 35 companies holding SEBI approval proposing to raise roughly Rs 50,000 crore and another 33 companies which are awaiting SEBI approval to raise about Rs 60,000 crore. This, of course, excludes the much anticipated mega IPO of LIC which is expected to be launched in this fiscal.

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India aims 300 million tonnes of crude steel production capacity by 2030

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New Delhi, Oct 31: India aims to achieve 300 million tonnes of crude steel production capacity by 2030, Union Minister of State for Steel, Bhupathiraju Srinivas Varma, said on Friday.

In a meeting with Sara Modig, State Secretary to Minister for Energy, Business and Industry, Sweden, here, in presence of Swedish Ambassador to India Jan Thesleff and other officials, the minister highlighted India’s growing steel sector, driven by visionary leadership of Prime Minister Narendra Modi.

Notably, India’s domestic steel demand is growing at an impressive 11-13 per cent, fuelled by large-scale infrastructure projects, while global demand faces a slowdown, according to Steel Ministry.

The discussions were held to explore collaboration opportunities in the field of research and development in Green Steel production and other advanced technologies to reduce carbon emissions.

Varma reaffirmed the invitation extended to Sweden to participate in Bharat Steel 2026, an International Conference-cum-Exhibition dedicated to the steel industry, scheduled to be held on April 16–17, 2026, at Bharat Mandapam, New Delhi.

Meanwhile, the growth rate of India’s eight core industries was recorded at 3 per cent in September this year compared to the same month of the previous year, with the steel and cement sectors recording strong growth during the month, data released by the Commerce and Industry Ministry showed.

Steel production surged by a robust 14.1 per cent in September compared to the same month of the previous year on the back of increased demand from big-ticket infrastructure projects being carried out by the government. The cumulative growth of steel during April to Sept of 2025-26 increased by 11 per cent over the corresponding period of the previous year.

The government imposed a 12 per cent temporary safeguard duty on certain steel imports in April 2025 to protect the domestic market. These measures follow previous actions and are part of ongoing efforts to safeguard the industry while promoting self-reliance under initiatives like ‘Make in India’.

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India’s fiscal deficit for April-Sep stands at 36.5 pc of full-year target

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New Delhi, Oct 31: India’s fiscal deficit for the first six months of the current financial year (April-September) stood at Rs 5.73 lakh crore, which constitutes 36.5 per cent of the annual estimate in the budget, government data released on Friday showed.

The figures show that the fiscal deficit is well under control, which paves the way for stable growth of the economy.

Total receipts stood at Rs 17.30 lakh crore, while overall expenditure during April to September was at 23.03 lakh crore rupees. These comprised 49.5 per cent and 45.5 per cent, respectively, of the target set in the budget for 2025-26.

Revenue receipts stood at Rs 16.95 lakh crore, of which tax revenue comprised Rs 12.29 lakh crore and non-tax revenue worked out to Rs 4.66 lakh crore.

Non-tax revenue jumped as the Reserve Bank of India approved a dividend of Rs 2.69 lakh crore to the central government, up from Rs 2.11 lakh crore transferred last year. This will help the central government reduce its fiscal deficit further.

The total government expenditure during the April-Sept period went up to Rs 23 lakh crore compared with Rs 21.1 lakh crore during the same period of the previous year.

This reflects higher Government expenditure on big-ticket infrastructure projects in the highways, ports and railways sectors, which play a key role in spurring economic growth in the country amid increasing economic uncertainties triggered by geopolitical developments and the US tariff turmoil.

The central government has pegged its fiscal deficit target at 4.9 per cent of the gross domestic product (GDP) in its latest budget for FY25, compared with 5.6 per cent in the last fiscal year, which was lower than the revised estimates of 5.8 per cent.

A declining fiscal deficit reflects the strengthening of the fundamentals of the economy and paves the way for growth with price stability. It leads to a reduction in borrowing by the government, thus leaving more funds in the banking sector for lending to corporates and consumers, which leads to higher economic growth.

With the strong emerging fiscal position in 2025-26, the government is likely to have some additional headroom to meet unforeseen expenditure on account of defence, according to a recent Bank of Baroda report.

The observation assumes importance in the backdrop of the tensions with Pakistan following the Pahalgam terror attack and Operation Sindoor.

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Mumbai Infra News: MHADA Selects Firm For Kamathipura Redevelopment Project, Awaits State Nod

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Mumbai: In a major step toward transforming one of Mumbai’s oldest and most congested neighbourhoods, the Maharashtra Housing and Area Development Authority (MHADA) has selected AATK Constructions for the long-pending redevelopment of Kamathipura in South Central Mumbai. The project, spread over 34 acres, has now moved to the state government’s high-power committee (HPC) for approval before it goes to the state cabinet for final clearance.

MHADA’s Mumbai Building Repairs and Reconstruction Board (MBRRB) had received two bids, one from AATK Constructions and another from J Kumar Infraprojects. After a detailed evaluation of technical and financial aspects, MHADA declared AATK the successful bidder and forwarded the proposal to the HPC for consideration.

“This urban renewal project will be a historic one,” said MLA Amin Patel, who has been advocating for Kamathipura’s redevelopment for more than a decade. “Bringing landlords, tenants and the government to a consensus was not easy, but this plan will finally offer a dignified living space to thousands.

The Kamathipura Redevelopment Project covers 8,001 tenements, including 6,625 residential and 1,376 commercial units, spread across 943 cessed buildings and involving 800 landowners. Most of these structures are over a century old and beyond repair, with many plots measuring only 50 sq metres, making independent redevelopment unfeasible.

Under the proposed plan, eligible residential occupants will receive 500 sq ft carpet area flats in new towers up to 57 storeys high, while non-residential tenants will get 225 sq ft spaces. Sale buildings will rise to 78 storeys, creating a mixed-use skyline that combines residential, commercial and sale components.

The redevelopment is expected to replace dilapidated tenements with modern high-rise structures equipped with amenities and better infrastructure. Landowners will also benefit from additional entitlements based on plot sizes, with larger plots earning proportionally higher returns.

Chief Minister Devendra Fadnavis, while addressing the Assembly earlier, acknowledged the significance of the project, noting that he had worked ‘for the people of Kamathipura.’ The state government had earlier entrusted the redevelopment responsibility to MHADA’s MBRRB under the Construction and Development (C&D) format after private developers expressed disinterest due to the complex ownership patterns.

Once approved by the HPC and cabinet, the long-awaited transformation of Kamathipura is expected to finally take off, turning one of Mumbai’s most dilapidated localities into a modern, livable urban zone.

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