Capital Markets Surge: A 21% Leap in Fundraising Predicted for FY25

Fundraising from capital markets is projected to increase by 21% to Rs 14.27 lakh crore in FY25, up from Rs 11.8 lakh crore in FY24. Sebi chief Madhabi Puri Buch announced that Rs 10.7 lakh crore has already been raised so far, with prospects of further growth, particularly in real estate and municipal bonds.

The fundraising forecast from capital markets, encompassing both equity and debt, is set to rise sharply by 21%, touching Rs 14.27 lakh crore in FY25, according to Sebi chief, Madhabi Puri Buch. In her address at a NISM-organized conference, Buch highlighted this projection and emphasized the substantial Rs 10.7 lakh crore collected this fiscal year alone.

Despite a minimal contribution from real estate and municipal bonds of Rs 10,000 crore, Buch believes these sectors will expand significantly over the next decade. Emphasizing the role of small and medium enterprises, she pointed out Sebi's efforts in expediting their approvals, contrasting the current 3-month timeframe with banks’ 15-minute assessments.

Moreover, Buch underscored the diverse avenues for fundraising, mentioning Sebi’s efforts to streamline processes for rights issuances and mutual funds. The upcoming launch of SIPs with a minimum of Rs 250 aims to boost domestic investor contributions, crucial during periods of foreign investor volatility. While some criticize Sebi’s rapid advancements, Buch defends the pace as essential for economic growth.

(With inputs from agencies.)