NEW DELHI, Dec 16: Banks and financial institutions dominated the initial public offerings (IPOS) in an otherwise ``disastrous primary market'' in 1997. However, the year witnessed unpredented surge in debt primary offering, up by 56 per cent over 1996, according to Prime.

The year will finally close with only 128 public issues mobilising a sum of Rs 5032 crore showing a drop of 89 per cent in the number of issues and an alarming 59 per cent decline in total amount mobilised. The total mobilisation of Rs 4336 crore by banks and FIs accounted for 86 per cent of the total funds collected in the primary market in the year. IDBI, ICICI and six bank issues were the main issues hitting the market. The share of banks and financial institutions was Rs 2,435 crore accounting for 17 per cent in 1995. This share went up to Rs 5,657 crore, an increase of 46 per cent, in 1996.

Debt public offerings in 1997 accounted for a high 57 per cent of the total mobilisation, up from 8 per cent in 1995 and 54 per cent in 1996.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.