Millennium Post

Oct fund raising via primary mkt soars 89% to Rs 7,200 cr

With this, the cumulative fund mobilisation by companies for the first seven months (April-October) of 2013-14 fiscal was Rs 18,636 crore compared with Rs 9,484 crore raised during the year-ago period.

According to the data available with the Securities and Exchange Board of India (Sebi), companies mopped up Rs 7,279 crore in October, as against Rs 3,847 crore mobilised in September. Of the Rs 7,279 crore raised in October, a major chunk of the amount (Rs 7,195 crore) was garnered through debt route and the remaining Rs 84 crore via issuance of equity shares.

The amount raised through the equity segment during the month included five initial public offerings (IPOs) — VCU Data Management, SRG Securities Finance, Amrapali Capital and Finance Services, Stellar Capital Services and Mitcon Consultancy & Engineering Services — listed on the small and medium exchange (SME) platform. Also, about Rs 40 lakh was mopped up through rights issues by Marshal Sons & Company (India) Ltd. According to experts, the fund raising increased after RBI governor Raghuram Rajan announced measures to boost the weakening rupee and reviving economic growth. The rise in fund mobilisation coincided with 1,785 points or 9.2 per cent surge in the 30-scrip BSE sensitive index (Sensex) during October. ‘During October 2013, Rs 7,279 crore were mobilised in the primary market (equity and debt issues) by way of 10 issues as compared to Rs 3,847 crore mobilised through 11 issues in September 2013, showing an increase of around 89.2 per cent from the previous month,’ Sebi noted.
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