FIIs step up participation in India’s primary market

Foreign institutional investors pumped in almost Rs 35,000 crore into the primary market compared with Rs 12,200 crore they invested in the secondary market since January 2017.

Increasing their participation in India’s primary market, foreign institutional investors (FIIs) have invested three times more in initial public offers, offers for sale and qualified institutional placements than in the secondary market.

According to NSE data, FIIs pumped in almost Rs 35,000 crore into the primary market compared with Rs 12,200 crore they invested in the secondary market since January 2017.

“Many new foreign institutions including global funds, which is distinct from emerging market funds that seldom come in Indian issues, pension and sovereign funds have shown interest in investing in India of late through IPOs and QIPs on expectations of much better corporate earnings growth over the next couple of years, aided by lower interest rates and continued bold reforms by the government,” ET quoted V Jayasankar, senior executive director at Kotak Investment Banking as saying.

Ravi Sardana, EVP at ICICI Securities, added: “One of the reasons for FIIs to tap the primary market is that they can deploy large amounts at a fixed price in one go, whereas in the secondary market it’s not possible.”

Source: ET


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