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India & Co to raise Rs 2,00,000 crore in 2018

Indian companies and the central government could raise about Rs 2 lakh crore this year in equity and equity-linked offerings. However, according to investment bankers, uncertain secondary market conditions could still dampen some plans. Fundraising is expected to be similar to the 2 lakh crore raised in 2017, the best year since 2007 for companies and promoters. The pipeline of fundraising, which includes initial public offerings (IPOs), qualified institutional placements (QIPs), rights, follow-ones and ETFs, is very strong though timing is dependent on secondary market behavior. According to S Ramesh, CEO Kotak Investment Banking, the private fundraising pipeline could be similar to government’s 1 lakh crore disinvestment target. Additionally, unlike last year, the current year could see issuances from diverse sectors such as infrastructure, power, real estate, consumption and healthcare, in addition to BFSI. Four big IPOs — Hindustan Aeronautics, Bandhan Bank, ICICI Securities and Bharat Dynamics — are expected to hit the primary market soon to raise about Rs 12,000 crore. About 17 companies have received market regulator’s approval to rise about Rs 25,000 crore through initial public offers (IPOs) while another 19 others have filed their draft red herring prospectus (DRHP) with Sebi.