He said another Rs 1 lakh crore is expected to be raised through equity in the January-March quarter, taking the total amount raised through equity to Rs 4.3 lakh crore by the end of March 2025.
Securities and Exchange Board of India Chairperson Madhabi Puri Buch on Friday said the amount raised from capital markets may rise 21 per cent to Rs 14.7 lakh crore in FY25 from Rs 11.8 lakh crore in the previous fiscal.
The total resources raised from the domestic capital market in the first nine months (April-December) of the current fiscal stood at Rs 10.7 lakh crore, including Rs 7.3 lakh crore raised from the primary debt market and Rs 3.3 lakh crore raised from equity.
“If we project for the next quarter (Q4), we will probably raise over Rs 14 lakh crore in terms of capital, both equity and debt, for the year (FY25),” Buch said at an event organised by Sebi and the National Institute of Securities Markets (NISM).
In the January-March quarter, another Rs 1 lakh crore is expected to be raised through equity, taking the total fund raising through equity to Rs 4.3 lakh crore by the end of March 2025, he said.
For fund raising through rights issue, Buch said the regulator has come up with a system in which the total end-to-end time for rights issue has been reduced from 317 days to 26 days. A rights issue is an offer by a company to its existing shareholders to buy additional shares on a specific date and at a lower price.
Buch said fund raising through infrastructure investment trusts (InvITs), real estate investment trusts (REITs) and municipal bonds is currently low, but fund raising through these instruments is likely to be higher in the next few years. In the first nine months, resources raised through InvITs and REITs were Rs 10,000 crore.
While an InvIT raises funds by issuing units to investors and invests those funds primarily in infrastructure sector assets, a REIT raises funds by issuing units to investors and invests those funds primarily in real estate sector assets.
Underlining the importance of the domestic bond market, Buch said it has contributed significantly to capital formation in the country.
“For every Rs 100 lent to corporate India by the banking system, the bond market contributes about Rs 60. It plays a vital role in capital formation,” he said. The primary market for bonds in the country is very strong. However, he added that the momentum in the secondary market is moderate as most investors in this segment are buy-and-hold investors.
Highlighting the role of domestic institutional investors (DIIs), Buch said these investors have provided a countervailing force in times of volatility in foreign flows. This has provided tremendous resilience to the domestic market.
Amount raised from capital markets may inflation 21 percent to Rs 14.7 lakh crore in FY25: Sebi chief
