Equity investors richer by Rs 10.7 trillion in 2016
Dalal Street investors have become richer by Rs 10.70 lakh crore in 2016, mainly helped by new listings and robust stock market trend where the BSE Sensex has surged over 9 per cent.
The total market valuation of all listed firms at BSE rose by Rs 10,70,320 crore to Rs 1,11,08,054 crore from Rs 1,00,37,734 crore at the end of 2015. Riding on a strong stock market sentiment, the total market capitalisation (m-cap) of BSE-listed companies surged to a lifetime high of Rs 1,11,22,815 crore on August 31.
The market valuation of all listed firms on BSE had first hit a record high of Rs 100 lakh crore in November 2014. Last year, the total m-cap of BSE firms had risen by Rs 2,02,493 crore to Rs 1,00,37,734 crore.
After falling 1,381.88 points or 5 per cent in 2015, the BSE benchmark Sensex has already surged 2,414.57 points or 9.24 per cent so far this year, scaling its 52-week high of 28,581.58 on September 2. Experts said the rise in investor wealth was also on account of rise in the number of listed firms. This year, 17 new companies have already made their stock market debut. More than 5,500 companies are listed on BSE.
In stock market, TCS continue to remain the most valued firm with a market valuation of Rs 4,95,267.06 crore followed by Reliance Industries (Rs 3,28,477.87 crore), HDFC Bank (Rs 3,26,549.50 crore), ITC (Rs 3,17,554.46 crore) and Infosys (Rs 2,36,826.48 crore).
Fund raising via preferential allotment falls 36% to Rs 11k cr
Indian firms raised Rs 11,000 crore via issuance of shares to promoters and shareholders on preferential basis in April-June quarter, a 36 per cent dip from the year-ago period. Firms had garnered Rs 17,398 crore in the first quarter of the last fiscal. The funds have been mobilised for business expansion plans, refinancing of debt, working capital needs and general corporate purposes. Preferential allotment serves as an alternative mechanism of resource mobilisation, wherein a listed firm issues shares or convertible securities to a select group of shareholders on a private placement basis. As per the latest data available with the Securities and Exchange Board of India (Sebi), funds garnered by listed companies through preferential allotment stood at Rs 11,057 crore in April-June quarter of 2016-17. Through such allotments, companies raised Rs 3,829 crore in April, Rs 5,218 crore in May and Rs 2,009 crore in June. In terms of numbers, 143 preferential allotments were made in the first quarter of the 2016-17 compared to 105 during the same period previous fiscal.