TLI Staff
New Delhi: Even as pandemic hit the economy hard and caused uncertainty in the market, fund mop-up funds through both public issues and rights issues posted record growth.
As per official data, a total of Rs 46,029.71 crore and Rs 64,058.61 crore were raised during FY21 through public issues and rights issue respectively, as against Rs 21,382.35 crore and Rs 55,669.79 crore in the previous financial year.
“This is an increase of 115% and 15% respectively in FY 2020-21 as compared to last year,” said Ministry of Finance in an official statement.
The show on account of issue of corporate bonds also remained impressive. Around 2003 issues of corporate bonds for an amount of Rs 7.82 lakh crore happened in 2020-21 compared to funds raised through 1,821 issues for the fiscal year 2019-20.
“Thus, while the number of issues increased by 10% in FY 2020-21, the amount raised increased by 13.5% as compared to the previous financial year,” the statement said.
Indian capital market has shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic. Assets under management (AUM) of mutual fund industry increased by 41% from Rs 22.26 lakh crore as on March 31, 2020 to Rs 31.43 lakh crore as on March 31, 2021.
The official data showed that the number of unique investors across mutual fund schemes also increased by 10% from 2.08 crore as on March 31, 2020 to 2.28 crore as on March 31, 2021.
Many entities even from travel and hospitality sectors have made their debut on the bourses in the last few months. People from small cities and towns have been thronging to stock markets contributing to the success of various IPOs.
“With increasing expansion of the mutual fund industry in smaller cities, assets under management (AUM) from below top 30 cities increased by 54% from Rs 3,48,167 crore as on March 31, 2020 to Rs 5,35,373 crore as on March 31, 2021,” the government release said.