Corporate-fund raising up three fold to Rs1,74000 lk crore

Corporate-fund raising up three fold to Rs1,74000 lk crore
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First Published: Tue, May 13 2008. 03 47 PM IST
Updated: Tue, May 13 2008. 03 47 PM IST
PTI
Mumbai: Preferential allotments have emerged as the most favoured route for raising funds from primary markets by corporate, which during 2007-08 mobilized Rs1.74 lakh crore, more than three times the amount garnered in the previous fiscal.
Unlike in the previous years, bulk of the funds amounting to Rs 61,600 crore was raised through preferential allotments during the year, said SEBI’s bulletin.
Pointing out that “preferential allotment was the most favoured route for garnering funds from the market in March 2008,” SEBI said there were 27 issues that raised Rs 6,638 crore.
During 2007-08, the market regulator said, there were 398 preferential allotment issues compared to 302 in the previous year, and the amount raised shot up from Rs 17,183 crore to Rs 61,589 crore.
Corporate raised Rs 54,511 crore through 92 public issues during the year compared to Rs 29,797 crore from 85 issues in the previous fiscal.
There were 85 IPOs during 2007-08 through which the companies raised around Rs 43,000 crore as compared to 77 in the previous year, resulting in mobilisation of Rs 28,500 crore.
According to the bulletin, 32 companies came out with rights issue during the year, raising a total of Rs 32,500 crore. Interestingly, during 2006-07, 39 companies came out with rights issue but raised less than Rs 4,000 crore.
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First Published: Tue, May 13 2008. 03 47 PM IST