amount mobilized

8/3/2019 Amount Mobilized

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WELCOME

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By

Gopi Vasanth

AMOUNT MOBILIZED IN INDIAN CAPITAL

MARKET

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INTRODUCTION

• The investment behavior of a firm depends crucially on its financial

structure since apart from technology, managerial and demand

problems.

• The only completely exogenous constraint on the diversified firm is the

stock market via its impact on the company valuation and cost of

capital.

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FINANCIAL NETWORK

•

Financial network facilities the intermediation between savers (public)and investors (Firms) helps to interpret savings into investment.

Financial network consist of intermediaries and markets.

• Intermediaries are those who middle between savers and investors.

• Markets are placed where such process is transacted.

• The fund market is the intermediaries between savers and investors.

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YEAR OF CAPITAL MARKET

• 2010 is said to be year of capital market.

• It was able to mobilize substantial fund through the issuance

of Initial Public Offers (IPOS) and Follow Public On Offers (FPOS).

• Rs. 67595 Crores were raised from the primary market, which is highest

ever in a calendar year.

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IPOS

IPOS – Initial Public Offering

• The first sale of stock by a private company to the public.

• IPOS are often issued by smaller, younger companies seeking the capital

to expand.

• It can also be done by large privately owned companies looking to

become publicly traded.

• It can be a risky investment .

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FPOS

FPOS – Follow on Public Offer

• when an already listed company makes either a fresh issue of securities to

the public or an offer for sale for public.

• For first 6 months of 2011, it raised Rs. 11,000 crore through IPOS and

FPOS.

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On over all basis 59 companies launched IPOS in 2010 to raise total

of Rs. 36017.4 Crores.

This shows an increase of Rs. 1938.3 Crores from 2007.

100 unlisted companies entered the capital market in India in 2010.

This year was also marked with the largest ever IPO issued in the

market.

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Between all the mega issues, there were more than 18 offerings with

an issue size of less than Rs. 100 Crores.

Eg. Gravita India , Sea TV Networks, Technofab Engineering,

Bedmutha Industries and Thanga mayil Jewellary .

These are Small companies that listed in 2010.

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PERFORMANCE OF INDIAN CAPITAL MARKET

The growth in Indian Capital markets started in 1991.

Market capitalization of companies has increased more than 6 times

and trading value has more than tripled by 2007.

The country’s strong economic growth is playing important role for

India’s long term investment themes.

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TRENDDescription(Rs InMillions)

2003/04

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10(First 9Months)

1 Capitalmobilized

1090.4 1672.3 2443.3 2295.5 9968.2 16828.5 8625.3

A Ordinary shares

657.5 377.5 579.8 380.2 924.8 1815.7 2104.9

2 No of organizedmarketmobilizers

14 14 29 34 64 64 39

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Market Capitalization

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CONCLUSION

The star toppers was the public sector units that raised a substantial

amount of fund.

This was record achievement in the past 10 years.

It include the coal India that raised Rs. 15199.44 Crores through a

primary offering in October.

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amount mobilized

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