Источник The Hindu Business Line.com, Chennai, India
Заголовок FPIs nudge ahead of domestic institutions in IPO investments this year
Дата 20240929

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FPIs nudge ahead of domestic institutions in IPO investments this year

FPIs nudge ahead of domestic institutions in IPO investments this year

Updated - September 29, 2024 at 06:14 PM.

FPIs lead in IPO investments, contributing 27% of total funds raised, with
domestic institutions investing more in recent years

By Ashley Coutinho

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Foreign portfolio investors (FPIs) have put in more money than any other
category of investors in initial public offerings (IPOs) this year.

FPI investments amount to ₹17,477 crore, which is 27 per cent of the ₹63,860
crore raised via IPOs this year. In comparison, domestic institutional
investors (DII)-- comprising mutual funds, insurance• Страхование firms, financial
institutions and banks -- have invested ₹17,277 crore.

Mutual funds alone have put in11,182 crore, which is 18 per cent of the
total amount raised. Non-institutional investors such as retail and high net• Страхование » Нетто
worth individuals together contributed ₹24,118 crore, amounting to 38 per cent
of the total mop-up.

To be clear, domestic institutions have invested more than FPIs in four out of
the last eight years: CY17, CY18, CY22 and CY23, data showed.

“FPIs used to be the dominant category of investors in IPOs until some years
ago. One could not think of launching an issue without their support. That has
changed over the past few years where at least the smaller issues can go
through with the support of domestic investors,” said Pranav Haldea, Managing
Director, PRIME Database.

Issue size

The average issue size this year has increased, said Haldea. So has the number
and amount raised by new age• Философия » Разделы философии » Эстетика » Искусство » Искусство XX Века » Постмодернизм » Движение Нью-Эйдж technology companies, which typically see greater
participation from foreign investors. These factors could have prompted higher
participation from FPIs, he said. FPIs prefer cutting larger cheques and
gravitate towards larger deals.

Large offerings this year include that of Bajaj Housing Finance (₹6,560
crore), Ola Electric Mobility (₹6,145 crore), Bharti Hexacom (₹4,275 crore)
and Brainbees Solutions (₹4,193 crore). These four IPOs saw investments to the
tube of ₹7,126 crore from FPIs compared with ₹6,149 crore from domestic
institutions.

The rise in FPIs flows in the past few weeks augurs well for large-sized
offerings such as Hyundai Motor India, Swiggy and Afcons Infrastructure.

FPIs have invested just a little over ₹1 lakh crore in Indian equities this
year, which includes investment in the secondary and primary market, according
to data from NSDL.

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Published on September 29, 2024

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