Fund-raising by issuance of shares to promoters and shareholders on a preferential basis has hit a four-month high of Rs 3,366 crore in October.
According to the latest data released by the Securities and Exchange Board of India (SEBI), funds garnered by firms through preferential allotment route surged to Rs 3,366 crore in October after plunging to a nine-month low of Rs 926 crore in September.
The October figure has reached the highest level since June, when the funds had mopped up Rs 11,878 crore through preferential allotment. However, the number of preferential issues slipped to 31 in October from 32 in the preceding month.
With the latest capital mop-up, the cumulative mobilised amount through preferential allotment route stood at Rs 34,851 crore from 251 issuance in the first seven months of the current financial year (April-October).
“There were 31 preferential allotments (Rs 3,366 crore) listed on BSE and NSE during October 2013 compared with 32 preferential allotments (Rs 926 crore) in September 2013,” SEBI said.
According to experts, the fund-raising increased after new RBI Governor Raghuram Rajan announced measures to boost the weakening rupee and revive economic growth.
The increase in fund-raising has coincided with BSE’s barometer index Sensex surging 1,785 points or 9.2 per cent in October.
In 2012-13, companies had garnered around Rs 47,000 crore against Rs 25,709 crore in the preceding fiscal. In 2010-11, companies had collected Rs 30,511 crore through preferential allotment.