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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