When it comes to DCM, capital mobilization through debt markets has fallen dramatically in recent years, although equity fund raising has been robust, and the stock market Bull Run with liquidity all around has resulted in record fund-raising through initial public offerings.

Despite a decrease in debt-based fund mobilization, it continued to account for the lion’s share of total fund-raising operations in 2021. Debt fund-raising has slowed as a result of long-term economic disruptions caused by the coronavirus pandemic’s first wave, followed by the disastrous second wave’s long-term impact.

Businesses came to a halt as a strict lockdown was imposed since March 2020, and to manage the negative impact of the same, corporates resorted to debts, the stock market was down for the majority of the year, and PE/VC markets were also not that active, leaving businesses with few options other than debt funding in 2020.

Financial sector enterprises in India typically employ Indian debt markets to promote forward lending (as the economic cycle accelerates) and improve capital buffers. The number of corporate bond issuances grew by 10% in 2020-21, while the amount raised increased by 13.5 percent over the previous fiscal year 2019-20.

On 22^nd march 2022 this info came out in public that Indiabulls Housing Finance proposal for raising a capital upto 50,000 crore using non-convertible bonds (NCD’s) or bonds via private placements basis had been approved by the committee.

Another best example for raise can be a Reliance offers raising of $4 Billion using largest ever foreign currency bonds.

This year in the ECM, we witnessed a variety of IPOs, some of which were successful, such as Nykaa, and others that were not so successful, such as the Paytm IPO. Despite the uncertainty caused by the COVID-19 epidemic, the finance Ministry reported that fundraising through public and rights issues increased by 115% and 15%, respectively, in 2020-21. According to the ministry, FY21 had 55 initial public offers and one follow-on public offering. According to the report, 21 rights disputes were effectively resolved during the fiscal year, up from 17 the previous year. The Indian equities capital market raised $35.6 billion in 2021, a 4.3 percent decrease in proceeds. However, the number of ECM offers increased by 73.6 percent. Follow-on offerings, which accounted for 52% of India’s total ECM revenues, garnered $18.6 billion in 2021, a 42.8 percent decrease from the previous year. This despite a 21.4 percent increase in the number of follow-up proposals. In 2021, initial public offerings reached historic highs, raising $16.6 billion, more than four times the amount raised the previous year. The number of such services increased by 172.7 percent as well. Three-fourths of the IPO revenues were raised in the second half of 2021, when 81 IPOs totaling $12.5 billion were launched.