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Last Updated : Aug 07, 2020 04:54 PM IST | Source: Moneycontrol.com

Equity fundraising on track to touch record high in 2020: Report

Many companies are conducting share sales to boost their cash reserves during the COVID-19 pandemic and consequent economic fallout.

 
 
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Amid the COVID-19 outbreak, India's equity capital market is seeing plenty of fundraising, setting 2020 on track to become the best year on record for share sales, Mint reported.

Many companies are conducting share sales to boost their cash reserves during the COVID-19 pandemic and consequent economic fallout.

In the span of a week, four companies initiated share sales worth over Rs 26,000 crore, including HDFC and Axis Bank.

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HDFC on August 5 launched a qualified institutional placement (QIP) to raise Rs 14,000 crore. Axis Bank on August 4 said it has set a floor price of Rs 442.19 per share for its proposed Rs 15,000 crore capital raise.

"India Inc is raising equity in this period of uncertainty in which the extent of the economic fallout of COVID is unknown. Companies are raising equity to build liquidity buffers to absorb any further shocks in the economy," the article quotes Anuj Kapoor, Managing Director and Head of Investment Banking at UBS India as saying.

Indian companies have raised Rs 1.32 lakh crore this year through various means, such as initial public offerings, qualified institutional placement (QIPs), follow-on public offers and rights issues, the report said.
First Published on Aug 7, 2020 04:54 pm
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