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Fund mop-up via pref issue drops over 38% in Apr-Oct

PTI 26 Nov 2014, 15:25:03 PM IST

New Delhi: Funds mobilisation by listed companies through preferential allotment of shares dropped by 38.5 per cent to Rs. 21,422 crore during the first seven months of 2014-15 compared to the same period last year.

During April-October 2013, firms had garnered Rs. 34,851 crore through issuance of shares to their respective promoters and shareholders on a preferential basis, according to the latest data compiled by the Securities and Exchange Board of India.

However, the cumulative number of preferential issues during April-October 2014 stood at 293, 42 issues more than what was witnessed in the preceding period.

Month-wise, funds mobilised in May were highest (Rs 5,142 crore), followed by Rs. 3,271 crore raised in June.

Besides, companies had raised Rs. 3,160 crore in April, Rs. 2,159 crore in July, Rs. 2,265 crore in August and Rs. 2,821 crore in September.

During October, there were 39 preferential allotments valued at Rs. 2,605 crore, a decline of 7.65 per cent in terms of value over the preceding month.

The latest data with SEBI was available only till October.

Of the total Rs. 21,422 crore mopped up in the current fiscal, Rs. 14,193 crore was mobilised from 119 issues listed on the BSE and NSE.

Moreover, Rs. 4,437 crore was raised through 61 issues listed on the BSE, while funds amounting to Rs. 3,324 crore were garnered from 126 issues on the NSE during the period under review.