New Delhi: Funds mobilised by Indian firms through issuance of shares to institutional investors tumbled by a whopping 85% to nearly 4,100 crore during the first quarter of the current fiscal in comparison to the year-ago period.

During April-June of 2017-18, the firms had mopped up 28,055 crore. According to the data available with the Securities and Exchange Board of India, the capital garnered by the listed companies through qualified institutional placement (QIP) route stood at 4,070 crore during the June quarter of the financial year 2018-19.

This is 85.49% less than the amount raised by the companies in the corresponding quarter of the previous fiscal. While in April 2018, the firms garnered 1,862 crore and the amount mopped up by them in May and June 2018 stood at 1,008 crore and 1,200 crore, respectively.

The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

QIP is an alternative mode of resource raising available for listed companies to mobilise funds from the domestic market.

Also, there were 9 issues during the first quarter of 2018-19 compared to 8 in the corresponding period of the previous fiscal.

Through the QIP route, during the financial year 2017-18, the firms had mobilised 67,257 crore via 53 issues.

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