India Inc mops up Rs 8,244 cr via primary marketNew Delhi: Indian companies have raised more than Rs. 8,200 crore through primary market route in the first half of the current fiscal, mainly for expansion plans and to support working capital requirements.According to latest
New Delhi: Indian companies have raised more than Rs. 8,200 crore through primary market route in the first half of the current fiscal, mainly for expansion plans and to support working capital requirements.
According to latest data available with the Securities and Exchange Board of India (SEBI), companies mopped up Rs. 8,244 crore during April-September period of 2014 against Rs. 8,987 crore mobilised in the year-ago period.
In the primary market, funds were raised through equity (IPOs and rights issue) as well as debt segments.
Despite a rally in the stock market, most of the funds were garnered through debt route. The BSE benchmark Sensex surged 19 per cent during the period under review.
Most of the capital was raised for expanding business and support working capital requirements.
IPOs, rights issue
As per data, 25 initial public offerings (IPOs) together raked in Rs. 1,031 crore, while companies mopped-up Rs. 2,795 crore through 10 rights issues. Besides, about Rs. 4,418 crore was garnered through the debt route.
In a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.
In the financial year 2012-13, companies had raked in Rs. 32,455 crore via the primary market, the lowest since 2008-09 when they had garnered Rs. 16,220 crore.