India’s Leading BFSI and FinTech Companies 2022

21 With moderation in indices growth, total market cap for BSE and NSE also witnessed significant moderation in FY22 (data upto February 2022). Growth in total market cap of BSE & NSE moderates in FY22 407 509 80 25 0 20 40 60 80 100 0 200 400 600 FY21 FY22 Market-Cap (Rs trillion) % y-o-y growth Source: RBI, BSE FY22 also turned out to be an exceptional year for the primary markets with a substantial rise in fund raising through IPOs. Huge oversubscription by retail, High Net worth Individuals (HNIs) and institutional investors led increasing number of companies to tap the capital markets. The incredible response by domestic investors to the IPOs can be attributed to the improved investors’ sentiments, low returns from debt and fixed income instruments, recovery in corporate sector earnings and strong economic fundamentals. The average size of IPOs also increased to ` 11.9 bn in FY22 (upto November 2021), the largest in last five years. The amount raised through rights issues and Qualified Institutional Placements (QIP), however, declined by 63% y-o-y and 53% y-o-y respectively in April-November 2021. This was slightly offset by the 67% y-o-y increase in the amount raised through preferential allotment in April-November 2021. FY22 turns out exception year for IPOs Valuation metrices remain above long-term average in December 2021 0 50 100 150 200 0 200 400 600 800 1000 FY18 FY19 FY20 FY21 FY22 No of Issues ` bn Amount (Rs bn) No of Issues 3.3 26.9 3.6 38.7 0 10 20 30 40 50 Price to Book Value Ratio (P/B) Shiller P/E Ratio % Long-Term Average Dec-21 Data for FY22 upto end-November 2021 Source: Economic Survey 2021-22 Long-term average of P/B ratio is calculated as average of annual P/B ratio since 1998-99. Long-term average of Shiller P/E is calculated as average of daily values since April 03, 2017 Source: RBI Dun & Bradstreet