New company formations beat COVID-19 jinx

Take the case of new companies’ formation, as reported by the Ministry of Corporate Affairs (MCA). In the previous fiscal, from April to August 2020, which was also the peak period of the pandemic, a total of 51,784 companies were formed.
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While the COVID-19 pandemic and the subsequent lockdown has been responsible for disruptions like job losses, the same has also been a boon of sorts as entrepreneurship got newer thrust across the length and breadth of the country.

Take the case of new companies’ formation, as reported by the Ministry of Corporate Affairs (MCA). In the previous fiscal, from April to August 2020, which was also the peak period of the pandemic, a total of 51,784 companies were formed.

The authorised share capital of these companies was over Rs 38,244 crore, of which Rs 2,671 crore was already paid up.

In comparison, during the same five months of the current fiscal – from April to August 2021 – the number of companies formed has increased by 25.3 percent to 64,979.

While the authorised share capital of these companies is upwards of Rs 1.06 lakh crore, their paid-up share is over Rs 3,432 crore – an absolute growth of over 28.5 percent compared to Rs 2,671 crore last year.

The pace of companies’ formation in the current fiscal is also indicative of the fact that the COVID-19 blues are left behind. Because, during FY 2021, a total of 1.55 lakh companies were formed, with authorised and paid-up share capital of Rs 54,259 crore and Rs 7,656 crore, respectively. Read more.

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Before you go, stay inspired with… 

Shripati Acharya, Managing Partner at Prime Venture Partners | Image Source: Shripati's team

“IPO in Indian markets is going to be a viable option. Indian markets have been fairly generous in their valuations, which is good for investors all around.”

Shripati Acharya, Managing Partner, Prime Venture Partners


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