Mop-up from IPOs, rights issues up nearly four-fold in Oct

Mop-up from IPOs, rights issues up nearly four-fold in Oct

Mumbai: IPOs and rights issues by India Inc raked in a whopping Rs19,109.7 crore in October, 2010, nearly a four-fold jump vis-a-vis the mop-up in the previous month.

This amount was mobilised through seven offers, including five initial public offers (IPOs).

Corporates had raised Rs4,802.4 crore in September when a total of six offers -- comprising three IPOs and three rights issues -- came up, market regulator Sebi said.

“During October, 2010, Rs19,109.7 crore we mobilised in the primary market through seven issues compared to Rs4,802.4 crore mobilised through 18 issues in September, 2010," said the latest issue of the Capital Market Review released by the Securities and Exchange Board of India (Sebi).

A major reason for the massive jump in IPO and rights issue collections in October was Coal India’s highly successful IPO, which garnered over Rs15,000 crore.

During October, the number of qualified institutional placement (QIPs) issues also went up to 11 from seven in the previous month.

The amount raised from QIPs rose by over 92% to Rs4,292 crore in October from Rs2,227 crore in September, Sebi added.

While 10 of the QIPs launched in October were placed on both the Bombay Stock Exchange and the National Stock Exchange, one was exclusively on the BSE.

The number of preferential allotments also went up during October, with Indian companies raising a total of Rs5,720 crore, an increase of over 61% vis-a-vis the previous month.

There were 16 preferential allotment issues held in September, which raised a total of Rs3,543 crore.

In October, the stock markets witnessed lot of volatility, but the Bombay Stock Exchange (BSE) benchmark Sensex ended almost flat.