Despite the uncertainty prevailing in the financial year 2020-21 going to the covid 19 pandemic, fundraising was better than that in the previous fiscal year for both public issues and right issues.
According to the finance ministry, press release during 2020-21 fiscal year around 46,030 crore rupees has been raised through public issues witnessing a growth of 115 per cent. On the other side with an increase of 15 per cent 64,059 crores was raised through the rights issues.
As per the release number of issues in the corporate bond market also increased by 10 per cent in the 2020-21 fiscal year. Around 2003 issues of corporate bonds for around 7,82,427 crore rupees happened during the reported fiscal year.
Similarly, the number of unique investors across mutual fund schemes also increased by 10 per cent in 2020-21. The number of unique investors across mutual fund schemes increased to 2.28 crore as of March 31st 2021. Assets under management of the mutual fund industry increased by 41 per cent to 31.43 lakh crore rupees as of March 31st 2021.
“April 2020 to March 2021, in this period the Sensex growth was around 68 per cent and the Nifty50 growth was around 71 per cent. This was a growth not seen till in the last almost 10 years. The last similar kind of growth was seen in 2009-10. 115 per cent increase in fundraising through the public issue is indeed a good indicator that the stock market was pretty active in terms of helping companies raise resources of that order.” said Executive Director Business Standard A K Bhattacharya
He added “India is now among the low tax countries, with a new manufacturing company that can actually set up a unit and pay only a base tax rate of 15 per cent plus and surcharge which takes it to around 17 and a half per cent or so, which is one of the lowest tax rates in the world right now that also give confidence to investors.”