New Delhi: Capital garnered by Indian companies through issuance of shares to institutional investors dived by 78% to 7,000 crore during the April-August period of the financial year 2018-19.

The firms had raised 31,153 crore during the corresponding period of the previous financial year.

According to the data available with the Securities and Exchange Board of India (Sebi), the capital garnered by the listed companies through the qualified institutional placement (QIP) route stood at 6,958 crore during the first five months of the current fiscal.

This is 77.66% less than the amount raised by the companies in April-August period of the last financial year.

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.

Of the five months under consideration, the firms garnered 2,888 crore in August, while no funds were raised in July. The companies mopped up 1,200 crore in June and the amount mobilised by them in May and April stood at 1,008 crore and 1,862 crore, respectively.

Also, there were 11 issues during the April-August period of 2018-19 compared to 13 in the corresponding period of the last fiscal.

During the financial year 2017-18, the firms raised 67,257 crore via 53 issues through the QIP route.

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