Markets may disappoint post record fundraising


According to analysts, fundraising through the primary market in many cases will impact the secondary market liquidity and also the return ratios with dilution of equity.

Synopsis

In 2010, the total amount raised from the primary market was a record Rs 72,000 crore and the Sensex declined 24 per cent in 2011. Similarly, in 2017 India Inc raised Rs 1.37 lakh crore and Sensex gave a return of just 6 per cent in 2018 as FPIs sold stocks worth Rs 35,800 crore.

Mumbai: Drought after a deluge: That seems to be nature’s way of evening out excesses.But will that be true of our equity markets that saw bumper IPOs in 2020? Historical data suggest so. Hence, investors should temper expectations of returns in 2021.India Inc has raised record 1.88 lakh crore through equities in 2020.Since 1995, whenever India Inc raised record funds, the Sensex returns next year were not that great. For instance, companies

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