Fund raising for Public Issues and Rights Issues registered an increase of 115% and 15% respectively in FY 2020-21

Number of issues in Corporate Bond Market increased by 10% in FY 2020-21

 Number of unique investors across Mutual Fund schemes also increased by 10% in FY 2020-21

Despite the uncertainty prevailing in FY 2020-21 owing to CoVID-19 pandemic, fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues. During FY 2020-21, ₹ 46,029.71 crore and ₹ 64,058.61 crore were raised through Public Issues and Rights Issue respectively, as against ₹ 21,382.35 crore and ₹ 55,669.79 crore raised last year. This is an increase of 115% and 15% respectively in FY 2020-21 as compared to last year.

Table 1: Resource Mobilisation through Public and Rights Issues

(Amount is in Rs. Crore)

Particulars	2019-20		2020-21
	No.	Amount	No.	Amount
1)Public Issues,	62	21,382.35	56	46,029.71
of which
A)IPOs	60	21,345.11	55	31,029.71
B)FPOs	2	37.24	1	15,000.00
2)Rights Issues	17	55,669.79	21	64,058.61
Total (1+2)	79	77,052.14	77	1,10,088.32

 

Corporate Bond Market

Similarly, around 2003 issues of Corporate Bonds for an amount of ₹ 7,82,427.39 crore happened in FY 2020-21, surpassing the amount raised (₹ 6,89,686.19 crore) 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.

Mutual Funds

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 ₹ 22.26 lakh crore as on March 31, 2020 to ₹ 31.43 lakh crore as on March 31, 2021. 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. With increasing expansion of the MF industry in smaller cities, the AUM from below top 30 cities increased by 54% from ₹ 3,48,167 crore as on March 31, 2020 to ₹ 5,35,373 crore as on March 31, 2021. Investors in Mutual Fund industry may choose to invest in any of the 1,735 mutual fund schemes across categories as per their investment objective as on March 31, 2021.

Capital raising surged across public, rights and debt markets, while mutual fund AUM and investor participation expanded markedly. Public market resource mobilisation increased in FY 2020-21, with higher aggregate capital raising through public and rights issues and elevated corporate bond issuance counts and amounts. Mutual fund industry metrics also expanded: assets under management rose markedly and unique investor numbers increased, including significant AUM growth outside top urban centres, indicating broader investor participation and diversified market channels for resource mobilisation.