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Despite the uncertainty prevailing in the financial year (FY) 2020-21 owing to CoVID-19 pandemic, fund raising in FY 2020-21 was better than that in FY 2019-20 for both Public Issues and Rights Issues. During FY 2020-21, Rs 46,029.71 crore and Rs. 64,058.61 crore were raised through Public Issues and Rights Issue respectively, as against Rs. 21,382.35 crore and Rs. 55,669.79 crore raised last year. This is an increase of 115% and 15% respectively in FY 2020-21 as compared to last year. This was announced by the Union Finance Ministry in a press release.

Resource Mobilisation through Public and Rights Issues(Amount is in Rs. Crore)

Particulars 2019-20 2020-21
No. Amount No. Amount
1)Public Issues, 62 21,382.35 56 46,029.71
of which
A)IPOs 60 21,345.11 55 31,029.71
B)FPOs 2 37.24 1 15,000.00
2)Rights Issues 17 55,669.79 21 64,058.61
Total (1+2) 79 77,052.14 77 1,10,088.32

 

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Corporate Bond Market

Similarly, around 2003 issues of Corporate Bonds for an amount of Rs. 7,82,427.39 crore happened in FY 2020-21, surpassing the amount raised (Rs 6,89,686.19 crore) through 1,821 issues for the fiscal year 2019-20. Thus, while the number of issues increased by 10% in FY 2020-21, the amount raised increased by 13.5% as compared to the previous financial year.

Mutual Funds

Indian capital market has shown its resilience to withstand the ripples caused by exogenous shocks like the pandemic. Assets under management (AUM) of Mutual Fund Industry increased by 41% 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% 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. Investors in Mutual Fund industry may choose to invest in any of the 1,735 mutual fund schemes across categories as per their investment objective as on March 31, 2021.

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