Despite the COVID-19 challenges in the financial year 2020-21, there was an increase of over 142 per cent in case of the fund raised by various institutions in the country through public issues and rights issues. It went up from Rs 77,052.14 crore in FY 2019-20 to Rs 1.10 lakh crore in FY 2020-21, stated the Ministry of Finance.
In FY 2019-20, various institutions raised Rs 21,382.35 crore through public issues, whereas in FY 2020-21, the fund raised via public issues was at Rs 46,029.71 crore. During FY 2020-21, Rs. 46,029.71 crore and Rs 64,058.61 crore were raised through public issues and rights issues respectively, as against Rs 21,382.35 crore and Rs 55,669.79 crore raised last year. This is an increase of 115 per cent and 15 per cent respectively in FY 2020-21 as compared to last year.
A public issue includes initial public offering (IPO) and Follow-On Public Offer (FPO). Through 55 IPOs, an amount of Rs 31,029.71 crore was raised in FY 2020-21. In FY 2019-20, despite the number of IPOs compared to FY 2020-21 was higher at 60, the amount raised was Rs 21,345.11 crore.
Similarly, around 2,003 issues of corporate bonds for an amount of Rs 7.82 lakh crore happened in FY 2020-21, surpassing the amount raised (Rs 6.89 lakh crore) through 1,821 issues for the fiscal year 2019-20. Thus, while the number of issues increased by 10 per cent in FY 2020-21, the amount raised increased by 13.5 per cent as compared to the previous financial year.
In the case of assets under management (AUM) of Mutual Fund Industry, it increased by 41 per cent from Rs 22.26 lakh crore as on March 31, 2020 to Rs 31.43 lakh crore as on March 31, 2021.The number of unique investors across mutual fund schemes also increased by 10 per cent 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 Rs 3,48,167 crore as on March 31, 2020 to Rs 5,35,373 crore as on March 31, 2021.