26% of IPO proceeds go into capex, 29% used to pay debt: Report
According to a study by Bank of Baroda chief economist Madan Sabnavis, of fresh equity raised through initial public offering, 26% is set aside for capital expenditure by companies. Notably, 29% of this is earmarked for debt repayment, while 9% is for investments in subsidiaries and 6.2% for working capital. Businesses receive about 65–67% of total money raised, study found.