Data released by Sebi shows that fund raising by Indian companies through issue of equities and bonds in the primary market declined 41 per cent to Rs 9,483 crore in April-October 2012. During the year-ago period, the number was Rs 16,131 crore.
Data shows that companies raised Rs 9,483.2 crore through 30 issues during Apr-Oct 2012 as against Rs 16,130.9 crore raised through 47 issues during the corresponding period in 2011-12.
Notably, companies raised a large chunk of the funds through rights issue route this year. The companies garnered Rs 6,749 crore through 10 rights issue, where shares are issued to existing investors as per their holding at pre-determined price and ratio.
Besides, companies have also raked in Rs 2,217 crore via six issues of debt securities and Rs 517 crore through 14 initial public offerings (IPO). Interestingly, most of the IPO were listed on small and medium enterprise platform.
In terms of monthly analysis, firms have mopped up Rs 8,335 crore in September, making it the highest in the current fiscal so far, as various reform measures announced by the government improved investor sentiment in the month.
According to Sebi, Rs 8.6 crore were mobilised in the primary market by way of one issue in October compared to Rs 8,334.9 crore mobilised through 16 issues in the previous months, indicating a plunge of 99.9 per cent over the previous month.
Leave a Reply
You must be logged in to post a comment.