Cos raise 1.11 lakh crore via preferential allotment in Q1
New Delhi: Indian firms mopped up Rs 1.11 lakh crore through issuance of shares on preferential basis during April-July period of the ongoing financial year, registering more than 11-fold jump over the year-ago period.
The firms had garnered Rs 9,598 crore during the corresponding period of 2017-18.
The funds mobilised during the reported period were also higher than the amount raised during the entire 2017-18, when the companies could manage to garner only Rs 59,500 crore. According to the data available with the Securities and Exchange Board of India, the companies had raised Rs 1,11,173 crore during the first four months of 2018-19, through preferential allotment of shares. The funds were garnered for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.
Preferential allotment serves as an alternative mechanism of resource mobilisation wherein a listed issuer issues shares or convertible securities to select persons or entities.
While the companies raised Rs 72,450 crore during April 2018, they mopped up Rs 2,812 crore and Rs 24,549 crore in May and June, respectively. In July 2018, the firms garnered Rs 11,361 crore.