Cos mop up Rs 37,000 cr via preferential allotments in April-Oct
BY PTI10 Dec 2015 12:36 AM GMT
PTI10 Dec 2015 12:36 AM GMT
Indian firms raised a staggering over Rs 37,000 crore through issuance of shares to promoters and shareholders on preferential basis during April-October period of the current fiscal. In comparison, companies had mobilised a total of Rs 28,260 crore in the entire last fiscal, 2014-15. The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirement and other 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. According to the latest data available with markets regulator Securities and Exchange Board of India (Sebi), funds garnered by companies through preferential allotments stood at Rs 37,257 crore through 211 issuance in the April-October period of 2015-16. Market experts say that fund raising through this route is likely to go up further as many companies have lined up plans of mobilising funds on preferential basis. Of the total funds raised, Rs 16,382 crore was mobilised in October as compared to Rs 1,031 crore in the preceding month. However, the number of preferential issues fell to 23 in October from 34 in September.
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