Promoters, Not Companies, Reap India’s Record IPO Riches
India's record year for initial public offerings so far hasn't made the companies richer. It's the promoters and investors who cornered the bulk of the gains.
Of the Rs 29,000 crore raised in more than two dozen IPOs, 84 percent came from stake sales by existing shareholders. Companies got the remaining 16 percent by issuing new stock, the lowest in at least 29 years.
The year 2014 was the only aberration when entire proceeds came through issuing fresh shares. That's because only one company launched an IPO that year: Just Dial Ltd.
When companies raise funds via the offer for sale route, the proceeds are used to pay existing shareholders who are looking to dilute their holding or exit the firm.
On the other hand, when a company issues fresh shares, the proceeds can be used as a capital investment to grow the company.
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Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
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The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
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Medicine Pricing: Where Must Profit Stop?
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Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
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High US Salaries, No Green Card Certainty: The Financial Calculation Facing Indian H-1B Families
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Swiggy vs Eternal: Food Delivery's Two Rivals Are No Longer In The Same Race
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Where You Live Shapes How You Get To Work | The Reason Why
Two-wheelers are the most popular way to get to work in India, accounting for nearly 43% of workplace commutes.
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Unhedged Position: Can India See An Indonesia-Style Time Correction?
The Nifty is trading below levels it first clocked in 2024. Is there, then, as I have suggested in the headline, potential that the current time correction drags on painfully for the next three-five, even ten years?
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Navigating Friction And Energy Realities: An Analysis Of Marco Rubio's October Visit To India
Occurring at a critical juncture marked by stalled trade negotiations and escalating geopolitical pressures over global energy supplies, the visit offers a profound window into modern US-India relations.
