Lok Sabha Question No. 102 (STARRED), answered on 2021-12-06
Subject: Initial Public Offering (IPO)
Ministry: FINANCE
Asked by: Vivek Narayan Shejwalkar

## GOVERNMENT OF NNDIA MINISTRY OF FNNANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA STARRED QUESTION NO. *102

TO BE ANSWERED ON MONDAY, 6 hDECEMBER, 2021/ Agrahayana 15, 1943 (SAKA)

## INITIAL PUBLIC OFFERING (IPO)

## QUESTION

## *102. SHRI VIVEK NARAYAN SHEJWALKAR:

Will the Minister of Finance be pleased to state:

- (a) whether many big companies are coming up with their Initial Public Offerings (IPOs);
- (c) whether the IPOs coming this year has broken the record of last year in terms of raising money and if s0, the details thereof;
- whether  IPOs are being brought by companies continuously this year despite the increasing economic crisis due to the Corona pandemic and if sO, the details thereof;
- whether it is a fact that the IPOs of the IT and e-Commerce companies are coming regularly but IPOs of manufacturing companies are not coming on that pace and if $0, the details thereof;
- the steps being taken by the Government to encourage the manufacturing companies?
- whether it is also a fact that unless manufacturing companies are promoted, there will not be a lot of employment generation and if the details thereof; and SO,

ANSWER MINISTER OF FINANCE (SMT NIRMALA SITHARAMAN)

(a) to (f): A statement is laid on the Table of the House.

***8

STATEMENT REFERRED TO IN THE REPLY TO PARTS (a) TO OF STARRED QUESTION NO *102 BY SHRI VIVEK NARAYAN SHEJWALKAR TO BE ANSWERED IN LOK SABHA ON 06.12.2021 REGARDING SINITIAL PUBLIC OFFERING (IPO)"

- (a): As per the information furnished by Securities and Exchange Board of India (SEBI), during the financial year 2020-21, 56 entities came out with Initial Public Offer (IPO) out of which 27 entities are Small and Medium Enterprises (SME): During the financial year 202122, 61 entities have already come out with IPO till October; 2021 out of which 34 entities are Small and Medium Enterprises (SME): Thenumber of IPOs; based on their issue size is given below:
- (6) & (c) IPOs are being brought by the companies regularly this year and the amount raised in the current financial year; till the month of October 2021, has surpassed the amount raised in the last financial year; as can be seen from the data provided in the table below:
- The IPOs brought by the entities are across the economic sectors including automobiles; cement, electronics equipment; food processing; textiles etc  The details are provided in the table below: spread
- (e) As can be seen from the above table, a number of manufacturing and service sector companies are coming up for listing: The growth of manufacturing sector in the country aids and promotes the employment generation not only in manufacturing but also in other sectors and vice-versa. Growth across different sectors of the economy generates more and better employment opportunities within the sector and also helps in generating the employment opportunities in other sectors too. large
- f) In order to support Industrial sector including manufacturing sector; the Government has taken several measures during the last two financial years  The Production-Linked Incentive (PLI) Schemes were introduced on 11.11.2020 in 10 sectors for enhancing India'$ manufacturing capabilities and exports under Atmanirbhar Bharat Abhiyan The details of PLI scheme is as follows: key

| Issue Size                        |   Financial Year 2021-22 |   Financial Year 2020- 21 |
|-----------------------------------|--------------------------|---------------------------|
| Below 100 Cr                      |                       35 |                        28 |
| Rs 100 Cr to less than Rs. 500 Cr |                        4 |                         6 |
| Equal to or more than Rs. 500 Cr  |                       22 |                        22 |
| Total                             |                       61 |                        56 |

|                               | Financial Year   |   Financial Year 2020-21 |
|-------------------------------|------------------|--------------------------|
| Number of Companies_          | 61               |                       56 |
| Amount raised (in Rs. Crores) | 52,759           |                    31060 |

| Industry                         | FY 2021-22 (upto October, 2021)   | FY 2020-21   |
|----------------------------------|-----------------------------------|--------------|
| Automobiles                      |                                   | 1            |
| Banks Financial Institutions     |                                   | 1            |
| Cement Constructions             |                                   | 3            |
| Chemical                         |                                   |              |
| Consumer Services                |                                   |              |
| Electronics Equipment'$ Products |                                   |              |
| E                                |                                   |              |
| Food Processing                  |                                   |              |
| Healthcare                       |                                   |              |
| Hotels                           | 2                                 |              |

| Info Tech                   | 4   | 8   |
|-----------------------------|-----|-----|
| Miscellaneous               | 21  | 10  |
| Roads & Highways            |     |     |
| Telecom                     |     |     |
| Textile                     |     |     |
| Transport Related Services_ |     |     |
| Total                       |     | 57  |

| No:   | Sector                                               | Implementing Ministry/Department                          |   Outlay (Five- year) Rs. in crore announced |
|-------|------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------|
|       | Chemistry Cell (ACC)Battery                          | Department of Heavy Industries                            |                                        18100 |
| 2     | Electronic/Technology Products                       | Ministry of Electronics and Information Technology        |                                         5000 |
| 3     | Automobiles Auto Components_                         | Department of Heavy Industries                            |                                        57042 |
| 4     | Pharmaceuticals drugs                                | Department of Pharmaceuticals                             |                                        15000 |
| 5     | Telecom Networking Products                          | Department of Telecom                                     |                                        12195 |
|       | Textile Products: MMF segment and technical textiles | Ministry of Textiles                                      |                                        10683 |
|       | Food Products                                        | Ministry of Food Processing Industries                    |                                        10900 |
| 8     | Solar PV Modules                                     | Ministry of New and Renewable Energy_                     |                                         4500 |
|       | White Goods (ACs & LED)                              | Department for Promotion of Industry_ and Internal Trade_ |                                         6238 |
| 10    | Specialty Steel                                      | Ministry of Steel                                         |                                         6322 |
| Total |                                                      |                                                           |                                       145980 |

The above schemes are in addition to the following three PLI schemes notified in March 2020:

| No.   | Sector                                                                                    | Implementing Department       | Ministry/   |   Financial outlays Rs. in crore |
|-------|-------------------------------------------------------------------------------------------|-------------------------------|-------------|----------------------------------|
|       | Mobile Manufacturing and Specified Electronic Components                                  | MEITY                         |             |                            40995 |
| 2     | Critical Starting materials/Drug Intermediaries and Active Pharmaceutical Ingredients Key | Department of Pharmaceuticals |             |                             6940 |
| 3     | Manufacturing of Medical Devices                                                          | Department of Pharmaceuticals |             |                             3420 |
| Total | Total                                                                                     | Total                         | Total       |                            51311 |

Further, a8 part of the Atmanirbhar Bharat package, various measures were announced for relief and credit   support  to Some of measures are as follows:

- The Emergency Credit Line Guarantee Scheme (ECLGS) has been formulated as a relief measure to Micro Small and Medium Enterprises (MSMEs) by providing them additional funding of up to 3 lakh crore in the form of a fully  guaranteed emergency credit Iine. The June covid-19 relief package expanded the ECLGS by additional Rs. 1.5 lakh crores.
- Provision has been made for & 20,000 crore subordinate debt for MSMEs which are stressed. Government has also announced to support them with & 4,000 crore through Credit Guarantee Trust for Micro and Small enterprises (CGTMSE)
- Government has revised definition of MSME by raising the Investment limit: An additional criterion of turnover has been introduced and distinction between manufacturing and service sector stands removed.
- General Financial Rules (GFR) of the Government has been amended to disallow global tender enquiries in government procurement of goods and services of value of will promote MSMEs to grOw.