Fund raising through IPO's hits the bottom - 2008

India Inc's capital mobilisation through initial public offering has hit rock bottom as the total amount raised via this route in BSE 2008 aggregated to $ 4,509 million, the lowest in the last three years, says a report.

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Capital mobilisation through IPOs witnessed a fall both in terms of volume and value as only 44 transactions worth $ 4508.85 million were announced, global consultancy firm Grant Thornton said. Way back in 2005, however, there were as many as 64 such deals with an announced value of $ 5521.50, it added.

The total fund mopped up through IPO in 2008 was $ 4.51 billion, 18.34 per cent lower than the amount raised in 2005.Compared with 2007, fund raising has dipped by 54.55 per cent. Fund raising activity through IPO reached its peak in 2007, when a whopping $ 9920.65 million was garnered.

Though there was a fall in both value as well as volume terms but the year 2008 saw several large IPOs across the board including Reliance Power's $ 2.56 billion issue - the largest public issue of 2008, Grant Thornton added.

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The other big IPOs in the year came from Rural Electrification Corp, IRB infrastructure developers and KSK energy ventures each raising $ 410 million, $ 236 million and $ 208 million respectively. The amount of money raised in 2008 was $ 4.51 billion, compared with $ 9.92 billion and $ 5.89 billion in 2007 and 2006 respectively.

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