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Fund raising by preferential route dips 34% to Rs 24K cr

Indian firms raised over Rs 24,000 crore through issuance of shares to promoters and shareholders on preferential basis in the first seven months of the current fiscal, a slump of 34 per cent from the year-ago level. The funds have been mobilised for business expansion, refinancing debt, working capital requirements 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 via preferential allotment stood at Rs 24,433 crore in the April-October period of 2016-17, compared to Rs 37,257 crore in the same period of last fiscal. In terms of numbers, 256 preferential allotments were made, compared to 211 a year ago.
PTI

PTI

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