india markets can raise $150 bn |
The Indian stock market has the potential to help companies raise a whopping $150 billion annually to help meet the country`s investment targets over the next 5-7 years, Bombay Stock Exchange (BSE) chief Ashish Chauhan said. This would mark an over ten-fold jump from an estimated $10-12 billion of funds raised annually from the Indian markets over the last 2-3 years from equity IPOs, bonds and offer for sale of shares among others routes, he said. India needs to garner $700-800 billion over the next 5-6 years to meet the investment target of $2-3 trillion over this period of time to meet the targets under `Make In India` and other initiatives for various sectors, Chauhan added. The comments assume significance as the equity IPO market has not been good for the last few years, except for the SME (small and medium-sized enterprises) platforms, in terms of raising funds. However, other primary market segments such as corporate debt, have seen a reasonably good collection of funds through public offers, while the offer for sale (OFS) route has also been very successful in equity market. Indian markets are among the most sophisticated markets and also among the most spread-out markets in the world. BSE is available in 200 cities and towns, or even more where its members are doing investment activity on behalf of their customers. The 140-years-old BSE is the world`s largest exchange in terms of number of listed companies, while it figures among top ten bourses globally on various other parameters as well. India is now a $2 trillion economy and it saves 30 per cent. So, India is effectively saving $600 billion a year and over the next 7 years, it would save close to $4.2 trillion at current level even if the economy does not grow at all. The savings would be $5 trillion. Of that, getting $750 billion is not difficult.
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