Betting big on Indian equities, foreign institutional investors (FIIs) have put in a whopping over Rs 71,900 crore so far this year in the country's bourses, the highest ever investment made in rupee terms in a single year. So far in 2009, overseas investors have invested a net Rs 71,979 crore (about $14.99 billion) in the local stock markets, the data available with market regulator Securities and Exchange Board of India (Sebi) reveals. But most of the money has gone into QIP and IPO proceeds where secondary market investments don't get counted. If we take into consideration only QIPs done since April2009, that amount itself is around Rs 35000 Cr and more than Rs 76000Cr is pending to be raised through QIP in months to come. So nearly half of total FII money has gone into QIPs alone.
In the current fiscal year, 14 companies have raised Rs14,649 crore though initial public offerings (IPOs).
Indian Companies’ Qualified Institutional Placement (Table)
By Paresh Jatakia and Manish Modi
Nov. 17 (Bloomberg) -- Following is a table showing Indian companies selling shares through a qualified institutional placement, or QIP, according to company filings to the Bombay and National Stock Exchanges.
Indian companies plan to raise a further $15 billion* in addition to the $8 billion* they have already raised since the start of April.
============================================================ ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== 3i Infotech 08/31/09 Rs. 5,000 * 09/22/09 Rs. 3,178 Aban Offshore 09/16/09 Rs. 25,000 11/13/09 Rs. 10,000 IO Ackruti City 06/05/09 USD 500 09/10/09 Rs. 3,024 Allied Digital Services 08/31/09 USD 50 10/16/09 Rs. 2,314 Axis Bank 08/04/09 Shares 71.4 * 09/24/09 Rs. 33,568 # 09/24/09 Rs. 4,582 Bajaj Hindusthan 03/24/09 Rs. 15,000 07/01/09 Rs. 7,232 Bank of Rajasthan 06/29/09 Rs. 2,500 08/29/09 Rejected Cipla 08/26/09 Rs. 15,000 * 09/29/09 Rs. 6,760 ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Delta Corp. Ltd. 05/22/09 Rs. 1,500 * 09/04/09 Rs. 833 Development Credit Bank 07/25/09 Rs. 1,000 11/13/09 Rs. 810 Dewan Housing Finance 06/27/09 Rs. 3,000 * 07/07/09 Rs. 2,258 Educomp Solutions Ltd. 07/07/09 Rs. 6,067 07/13/09 Rs. 6,067 Emami 05/28/08^ 15% Shares 07/02/09 Rs. 3,100 Glenmark Pharma 07/27/09 USD 250 * 09/18/09 Rs. 4,135 GVK Power & Infrastructure 06/09/09 Rs. 25,000 07/07/09 Rs. 7,168 HCL Infosystems 08/14/09 Rs. 5,000 * 10/16/09 Rs. 4,727 Hindustan Construction 05/25/09 Rs. 15,000 * 06/30/09 Rs. 4,801 Housing Dev. Fin. Corp. 07/22/09 Rs. 40,000 08/24/09 Rs. 43,012 Housing Development & Infra. 05/25/09 USD 600 07/02/09 Rs. 16,884 Indiabulls Financial Services 06/25/09 USD 200 07/21/09 Rs. 9,600 Indiabulls Real Estate 04/24/09 USD 600 05/23/09 Rs. 26,566 IndusInd Bank 07/24/09^ 25% Shares 08/13/09 Rs. 4,803 ING Vysya Bank 09/04/09 Shares 16.8 09/11/09 Rs. 4,159 Jai Balaji Industries 06/30/09 Rs. 4,500 10/28/09 Rs. 1,985 KSK Energy Ventures 07/29/09 Rs. 20,000 11/13/09 Rs. 5,159 ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Lanco Infratech 05/30/09 Rs. 2,500 * 08/05/09 Rs. 7,274 Larsen & Toubro 08/28/09 USD 600 10/15/09 Rs. 18,728 LIC Housing Finance 06/01/09 Shares 10 * 09/16/09 Rs. 6,580 Nagarjuna Construction 06/29/09 Rs. 5,500 09/07/09 Rs. 3,674 Network 18 Media & Inv. 03/02/09 Shares 25 06/12/09 Rs. 2,050 Opto Circuit India 06/03/09 Rs. 4,000 * 09/15/09 Rs. 4,000 Orbit Corporation 06/03/09 Rs. 5,000 * 08/14/09 Rs. 1,450 Parsvnath Developers 05/25/09 Rs. 25,000 * 10/07/09 Rs. 1,680 Patel Engineering 06/26/09 USD 500 * 10/22/09 Rs. 3,443 PSL 06/10/09 Rs. 3,000 08/24/09 Rs. 1,493 PTC India 04/16/09 Rs. 5,000 * 05/27/09 Rs. 5,000 Punj Lloyd 07/27/09 Rs. 15,000 * 08/05/09 Rs. 6,702 REI Agro 05/16/09 USD 150 * 07/23/09 Rs. 1,827 Shree Renuka Sugars 06/20/09 07/03/09 Rs. 5,060 Sobha Developers 05/22/09 Rs. 15,000 07/03/09 Rs. 5,269 Texmaco 06/22/09 Rs. 2,000 * 07/31/09 Rs. 1,706 Unitech2 01/19/09 Rs. 50,000 * 07/01/09 Rs. 27,893 ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Unitech1 04/22/09 Rs. 16,211 United Spirits 09/30/09 USD 350 10/20/09 Rs. 16,156 Webel-Sl Energy Systems 06/05/09 Rs. 600 08/06/09 Rs. 454 ABG Shipyard 06/12/09 Rs. 200 * Adani Enterprises 05/20/09 Rs. 15,000 Adhunik Metaliks 06/30/09 Rs. 2,500 * Adinath Bio-Labs 06/17/09 Ajel Infotech 09/30/09 Rs. 720 * Anant Raj Industries 06/25/09 Rs. 20,000 * Anil Products 06/30/09 Rs. 1,500 * Ansal Properties & Infra. 06/15/09 Rs. 15,000 Anu’s Laboratories 06/11/09 Rs. 2,500 * Asian Electronics 06/24/09 Rs. 700 * Austral Coke & Projects 05/28/09 USD 200 * Bag Films 09/16/09 USD 30 * Bajaj Electricals 10/12/09 Rs. 1,750 Bartronics India 10/30/09 * ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Beckons Industries 10/23/09 * Bharat Forge 10/01/09 USD 150 * Birla Power 09/01/09 Rs. 1,000 * BL Kashyap & Sons 06/29/09 Rs. 4,500 * Bodal Chemicals 08/29/09 Rs. 600 * Cambridge Technology 11/11/09 Rs. 250 City Union Bank 06/30/09 Rs. 3,000 Core Projects & Technologies 08/05/09 Rs. 12,500 * Country Condo’s 08/10/09 Shares 100 Crazy Infotech 09/30/09 Rs. 500 * Decolight Ceramics 07/31/09 Rs. 300 * Dhanus Technologies 06/18/09 USD 30 * Dollex Industries 06/10/09 Electrosteel Castings 09/15/09 Rs. 6,000 Entegra 07/31/09 Rs. 7,500 * Epic Energy 09/04/09 Rs. 650 * Era Infra Engineering 07/09/09 USD 200 * ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Ess Dee Aluminium 10/14/09 Rs. 5,000 * Essar Oil 05/19/09 USD 2,000 * Euro Ceramics 10/27/09 USD 25 * Everest Kanto Cylinder 06/12/09 Rs. 1,500 Exelon Infrastructure 10/20/09 Rs. 1,200 * FCS Software Solutions 08/12/09 USD 40 * Financial Technologies India 09/25/09 Rs. 1,500 * Fortune Financial Services * Glory Polyfilms 08/31/09 USD 25 * Gremach Infrastructure 06/27/09 USD 100 * GTL Infrastructure 07/10/09 Shares 1,000 Gulshan Polyols 11/17/09 Rs. 500 * GVK Power & Infrastructure 10/24/09 Rs. 18,000 * Himadri Chemicals 08/22/09 Rs. 1,000 * Hindalco Industries 10/15/09 Rs. 29,000 * Indage Vintners 07/04/09 Rs. 1,100 India Cements 08/07/09 USD 100 * ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Indian Metals & Ferro Alloys 07/06/09 * Interworld Digital 06/09/09 USD 10 * IOL Netcom 10/31/09 Rs. 2,000 IRB Infrastructure 10/22/09 * J Kumar Infraprojects 07/30/09 Rs. 2,000 Jai Corp 09/23/09^ 25% Shares Jaiprakash Hydro Power 07/03/09 Rs. 15,000 * JBF Industries 10/28/09 Rs. 3,000 * Jet Airways 08/31/09 USD 400 * JSW Steel 05/28/09 USD 1,000 Jupiter Bioscience 08/31/09 * JVL Agro 11/12/09 USD 30 * Jyoti Cosmetics Exim 05/11/09 Rs. 200 * Karnataka Bank 05/26/09 Rs. 5,000 Karur Vysya Bank 06/26/09 Rs. 5,000 KBS Capital Management 10/30/09 USD 15 * KEI Industries 07/13/09 Rs. 1,000 ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Kiri Dyes and Chemicals 08/31/09 Rs. 2,500 * Koutons Retail India 09/30/09 Rs. 2,000 * Lancor Holdings 10/15/09 * Lok Housing & Construction 08/10/09 USD 400 Magma Fincorp 06/06/09 Rs. 4,000 Marg Ltd. 09/29/09 Rs. 5,000 Max India 07/01/09 Rs. 4,500 MIC Electronics 09/09/09 USD 30 * Neha International 08/07/09 USD 7.5 * Nexxoft Infotel 06/27/09 Rs. 300 * Nitin Fire Protection Ind. 06/04/09 USD 50 * Omaxe 06/08/09 Rs. 18,000 * Omnitech InfoSolutions 10/01/09 USD 50 * Oudh Sugar Mills 08/26/09 Prakash Industries 08/21/09 Rs. 5,000 * Puravankara Projects 05/25/09 Rs. 7,500 * Pyramid Saimira Theatre 09/11/09 Shares 10 ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Radhe Developers India 09/02/09 Rs. 5,000 * Rainbow Papers 06/30/09 Rs. 2,500 * Ram Kaashyap Investment 08/22/09 * Reliance Communications 06/01/09^ 25% Shares Reliance Infrastructure 05/25/09^ 25% Shares Responsive Industries 10/14/09 USD 150 * Resurgere Mines & Minerals * Richa Industries 09/26/09 * Rolta India 10/22/09 USD 250 * Ruchi Soya 09/30/09 Rs. 10,000 * S.Kumars Nationwide 06/30/09 Rs. 5,000 Sanwaria Agro 09/30/09 Rs. 2,000 * Sarang Chemicals 08/24/09 Rs. 700 * Sejal Architectural 09/15/09 Rs. 2,000 SEL Manufacturing Co. 08/26/09 Rs. 3,000 * Sesa Goa 09/24/09 Rs. 60,000 * Shantivijay Jewels 08/21/09 * ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== Sheetal Bio Agro Tech 08/24/09 Rs. 650 * Shiv Vani Oil & Gas Explorati 06/09/09 Rs. 6,000 * Shree Ashtavinayak Cine V. 09/28/09 USD 150 * Sterlite Industries 06/23/09^ 25% Shares Sunteck Realty 07/30/09 Rs. 5,000 Sylph Technologies 07/15/09 * Sylph Technologies 07/15/09^ 50% Shares Tantia Constructions 10/12/09 Rs. 2,500 * Tata Steel 08/27/09 Rs. 50,000 * Tata Teleservices Maharashtra 09/29/09 USD 250 * Tatia Global Venture 10/14/09 Tech Mahindra 07/23/09 Shares 13.6 Teledata Informatics 10/08/09 USD 100 * Teledata Technology Solutions 08/31/09 * Tricom India 08/21/09 * Triveni Engineering 08/17/09 Shares 30 * Uniflex 09/23/09 Rs. 7,500 * ============================== ============================== ==================== Companies Announced Proposed Completed Raised on (Million) on (Million) ============================== ============================== ==================== UniPhos Enterprises 11/06/09 Rs. 1,000 * Unity Infraprojects 09/24/09 Rs. 2,500 Usha Martin 11/12/09 Rs. 5,000 * Venus Ventures 10/20/09 Rs. 1,200 * Vishal Retail 09/26/09 Rs. 2,500 Walchandnagar Industries 11/03/09 Rs. 2,000 Wellworth Overseas 04/21/09 Rs. 250 * Yes Bank 07/21/09 USD 250 * ============================== ============================== ==================== Notes: * Proposed figures include possible fund raising by QIP, foreign currency convertible bonds, American and Global Depositary Receipts. ^ Proposed percentage of companies paid-up share capital. PA:Pending Allotment. IO:Issue Oppened. # Global Depository Receipts Placement.
Source: Bombay Stock Exchange, National Stock Exchange of India.
Disinvestment of NTPC, REC and Satluj Jal Vidyut Nigam will mop up Rs 11,000 crore based on current market valuations and NMDC and MMTC can raise another Rs 24,000 crore total Rs.35,000crs before this fiscal year.
Conclusion:-
Brazil has imposed a 2 per cent tax effective since Oct’09 on money entering the country to invest in equities and fixed income instruments. Taiwan has also imposed capital controls on Tuesday, banning foreign funds from investing in time deposits in a move that appeared to be aimed at deterring bets on currency appreciation.
On these similar lines, ASSOCHAM has suggested that FIIs should be charged a tax of 2% of their money pumped into the stock market to prevent further rise of the rupee and also an asset bubble. Foreign Institutional Investors have put in over Rs 71,900 crore so far this year in the country’s bourses, the highest ever investment made in rupee terms in a single year.
India can grow by leaps and bounds from here also but as far as stocks are concerned, liquidity is foremost important. More than half of FII money has gone into IPOs and QIPs and retail participation of IPOs this year has been very poor if not pathetic. Mutual Funds too have faltered in participation as they have sold Net Rs 2395Cr in 2009 so far (as at 16 Nov 2009). Valuations have stretched themselves to new heights but undercurrent doesn’t look strong as secondary markets don’t show promise if FII inflow is something to go by. If the market is to be driven by liquidity, where is it?
Brazil sets 2% tax on capital inflows http://www.ft.com/cms/s/0/7d275f18-bd05-11de-a7ec-00144feab49a.html
Taiwan curbs capital inflows with eye on currency http://www.forbes.com/feeds/afx/2009/11/10/afx7104697.html
