Fund raising by Indian companies through the primary market route jumped more than two-fold to over Rs 1,700 crore in August as against Rs 747 crore in July.

With the latest fund mop-up by companies, the cumulative amount mobilised for the current fiscal (April-August) has surged to Rs 3,967 crore through 18 issues, higher than the Rs 1,140 crore raised via 13 issues during the year-ago period.

According to data available with market regulator the Securities and Exchange Board of India (SEBI), companies mopped up a total of Rs 1,726 crore in August, higher than the Rs 747 crore mobilised in July.

During August, a sum of Rs 1,659 crore was raised through rights issues by four companies — Reliance MediaWorks, Godrej Properties, Kokuyo Camlin and Asahi India Glass Ltd.

The amount raised through the equity segment during the month included five initial public offerings (IPOs) — GCM Commodity & Derivatives Ltd, VKJ Infradevelopers, Silverpoint Infratech, Kushal Tradelink, Tiger Logistics (India) Ltd — listed on the small and medium exchange (SME) platform.

Market experts said fund raising increased in August over the preceding month and most of the money was garnered through rights issues and only small companies hit the capital market to mop up fresh capital.

Meanwhile, the benchmark S&P BSE Sensex plunged 726 points or 3.75 per cent during the period under review.

“During August 2013, Rs 1,726.1 crore was mobilised in the primary market by way of nine issues as compared to Rs 747 crore mobilised through three issues in July 2013, an increase of around 131.1 per cent in the previous month,” SEBI said.

In financial year 2012-13, companies had raked in Rs 32,455 crore via the primary market, the lowest since 2008-09 when they had garnered Rs 16,220 crore.

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