“During December 2011, an aggregate amount of Rs5,600 crore was mobilised through three public debt issues compared to two issues worth Rs1,061 crore in November 2011,” SEBI said in its ‘Capital Market Review’
Mumbai: The quantum of funds raised by India Inc through initial public offers and rights issues went up by over five-fold to Rs5,600 crore in December over the previous month, reports PTI.
Companies had raised Rs1,601 crore in November with two issues, according to the ‘Capital Market Review’ by market regulator Securities and Exchange Board of India (SEBI).
“During December 2011, an aggregate amount of Rs5,600 crore was mobilised through three public debt issues compared to two issues worth Rs1,061 crore in November, 2011,” SEBI said.
The regulator said that the amount mobilised during the April-December period stood at Rs23,003 crore through 51 issues as against Rs50,480 crore raised through 66 issues during the corresponding period in 2010-11.
Experts said that the volatile nature of the market and the global economic slowdown have prompted companies to stay away from coming out with new issues.
SEBI also said that there was only a single Qualified Institutional Placement (QIP) in December which raised Rs68 crore. In the previous month, there were no QIPs.
Preferential allotments, however, witnessed a decline in December 2011 with 19 such allotments raising a total of Rs517 crore. In comparison, there were 21 preferential allotments executed in the primary market in November but they had raised only a total of Rs169 crore.
The stock market witnessed a downward swing in December, with the benchmark Sensex losing over 6.6% per cent during the month.