India Inc raised a staggering Rs 11,500 crore through rights issue offering since the beginning of 2015, making it the highest fund mobilisation through the route in seven years. In <g data-gr-id="13">a rights</g> issue, shares are issued by firms to their existing investors as per their holding at a pre-determined price and ratio.
As many as six companies collectively raised about Rs 11,500 crore this year so far as against Rs 5,224 crore in 2014, according to an analysis based on information available with stock exchanges. Fund mobilisation through <g data-gr-id="17">rights</g> issue in 2015 so far has already surpassed the amount garnered through this platform in each of the past six years. In 2008, 26 companies had raked in a total of Rs 29,6990 <g data-gr-id="16">crore</g>.
Market experts believe that improvement in the stock markets scenario has helped in raising fund through rights issue mode. The fund-raising through this route was hit among biggies like Tata Motors and GMR Infrastructure and Future Retail. The largest rights issue was from Tata Motors (Rs 7,500 crore), followed by Future Retail (Rs 1,600 crore), GMR Infrastructure (Rs 1,402 crore), State Bank of Travancore (Rs 474 crore), Can Fin Homes (Rs 276 crore) and Zee Media Corporation (195 crore).
NSE to launch SLB rollover facility today
In a bid to increase participation in the stock lending and borrowing (SLB) market, National Stock Exchange will introduce the rollover facility under this facility from Tuesday. SLB mechanism allows short sellers to borrow securities for making delivery.
The rollover facility in the SLB session will be available for a three-month period (original contract plus two rollover contracts). Under the rollover facility, lenders of securities would be allowed to extend an existing position. It means that lenders who are due to receive securities can now extend the period of lending. Similarly, a borrower who has to return borrowed securities can extend the period of borrowing.