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India Inc fund raising surges two-fold in August

Fund raising by corporates through primary market during the April-August period surged to Rs3,967 crore through 18 issues, from Rs1,140 crore raised via 13 issues a year-ago

Fund raising by Indian companies during August through primary market route jumped more than two-fold to Rs1,726 crore in compared with Rs747 crore in July.

 

According to data from Securities and Exchange Board of India (SEBI), the cumulative amount mobilised during the current fiscal (April-August) has surged to Rs3,967 crore through 18 issues, from Rs1,140 crore raised via 13 issues during the year-ago period.

 

During August, four companies, Reliance MediaWorks, Godrej Properties, Kokuyo Camlin and Asahi India Glass Ltd raised Rs1,659 crore through rights issues.

 

The amount raised through the equity segment during the month included five initial public offerings (IPOs) — GCM Commodity & Derivatives Ltd, VKJ Infradevelopers, Silverpoint Infratech, Kushal Tradelink, Tiger Logistics (India) Ltd — listed on the small and medium exchange (SME) platform.

 

Market experts said fund raising increased in August over the preceding month and most of the money was garnered through rights issues and only small companies hit the capital market to mop up fresh capital.

 

Meanwhile, the benchmark S&P BSE Sensex plunged 726 points or 3.75% during the period under review.

 

“During August 2013, Rs1,726.1 crore was mobilised in the primary market by way of nine issues as compared to Rs747 crore mobilised through three issues in July 2013, an increase of around 131.1% in the previous month,” SEBI said.

 

During FY2012-13, companies had raked in Rs32,455 crore via the primary market, the lowest since 2008-09 when they had garnered Rs16,220 crore.

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Lalu Yadav gets five years jail, Rs25 lakh fine in fodder scam

A special CBI court in Ranchi has sentenced RJD chief Lalu Yadav to five years imprisonment while former CM Jagannath Mishra and JDU MP Jagdish Sharma got four years jail in the fodder scam

Lalu Prasad Yadav, the chief of Rashtriya Janata Dal (RJD) and former chief minister of Bihar has been sentenced to five years imprisonment by the special Court of Central Bureau of Investigation (CBI) in the multi-crore fodder scam. Bihar's former CM Jagannath Mishra and Jagdish Sharma, the member of Parliament (MP) from Janata Dal (United) have been sentenced four year jail term, each. Yadav has also been fined Rs25 lakh in the scam. The CBI court has awarded five-year imprisonment to former district animal husbandry officer BN Sharma while imposing a fine of Rs1.5 crore.

 

The sentencing by special CBI judge Pravas Kumar Singh disqualifies the RJD leader from Parliament and renders him ineligible for contesting elections for 11 years.

Six other politicians and four IAS officers, among the convicted, were also sentenced to prison terms for fraudulent withdrawal of Rs37.7 crore from the Chaibasa treasury when Prasad was heading the RJD government in the early 1990s.

A sitting MP from Jahanabad, Sharma also faces disqualification in the wake of a Supreme Court judgement that an MP or MLA would stand disqualified immediately if convicted by a court for crimes with punishment of two years or more and under some other laws even without jail sentence.

RJD spokesperson Manoj Jha has said the verdict would be challenged in a higher court.

 

The fodder scam was a corruption scandal that involved the embezzlement of about Rs950 crore (equivalent to Rs2,000 crore or $310 million in 2013) from the government treasury of Bihar. Among those implicated in the theft and arrested were Lalu Yadav, the then chief minister of Bihar as well as former CM Mishra. The scandal led to the end of Yadav's reign as chief minister of Bihar. On 25 July 1997, Lalu resigned from his position, but installed his wife Ravri Devi as the new chief minister of Bihar. On 28 July 1997, Rabri's new government won another vote of confidence in the Bihar legislature by 194–110, thanks to the Congress and Jharkhand Mukti Morcha voting in alignment with the RJD.

 

There were also allegation on Nitish Kumar and Shivanand Tiwari of receiving Rs1 crore and Rs60 lakh, respectively from SB Sinha.

 

The theft spanned many years, and allegedly involved numerous administrative and elected officials across multiple administrations of the Congress and the Janata Dal parties. The corruption scheme involved the fabrication of "vast herds of fictitious livestock" for which fodder, medicines and animal husbandry equipment was supposedly procured.

 

Although the scandal broke in 1996, the theft had been in progress, and increased in size, for over two decades. Besides the magnitude and duration of the theft, the scam was and continues to be covered in Indian media due to the extensive nexus between tenured bureaucrats, elected politicians and businesspeople that it revealed, and as an example of the mafia raj that has penetrated several state-run economic sectors in the country.

 

As of May 2013, the trial has completed in 44 cases out of a total of 53 cases. More than 500 accused have been convicted and awarded punishments by various courts.

 

In 1992, Bidhu Bhushan Dvivedi, a police inspector with Bihar's anti-corruption vigilance unit submitted a report outlining the fodder scam and likely involvement at the chief ministerial level to the director general of the same vigilance unit, G Narayan. In alleged reprisal, Dvivedi was transferred out of the vigilance unit to a different branch of the administration, and then suspended from his position. He later became a witness as corruption cases relating to the scam went to trial, and reinstated by order of the Jharkhand High Court.

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COMMENTS

Awadhesh Vaish

3 years ago

justice delayed is justice denied, we had Lalu as Railways Minister for so long

MOHAN

3 years ago

Nitish Kumar received Rs 1 crore from SB Sinha ?


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