Indian companies have raised more than Rs 8,200 crore through primary market route in the first half of the current fiscal, mainly for expansion plans and to support working capital requirements.
According to latest data available with the Securities and Exchange Board of India (SEBI), companies mopped up Rs 8,244 crore during April-September period of 2014 against Rs 8,987 crore mobilised in the year-ago period.
In the primary market, funds were raised through equity (IPOs and rights issue) as well as debt segments.
Despite a rally in the stock market, most of the funds were garnered through debt route. The BSE benchmark Sensex surged 19 per cent during the period under review.
Most of the capital was raised for expanding business and support working capital requirements.
IPOs, rights issue
As per data, 25 initial public offerings (IPOs) together raked in Rs 1,031 crore, while companies mopped-up Rs 2,795 crore through 10 rights issues. Besides, about Rs 4,418 crore was garnered through the debt route.
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
In the 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.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.