Fund raising by issuance of shares to promoters and shareholders on a preferential basis hit a nine-month low of Rs 926 crore in September amid volatile market conditions.
According to the latest data available with the market regulator Securities and Exchange Board of India (SEBI), funds garnered by companies through preferential allotment declined to Rs 926 crore in September from Rs 1,062 crore in the preceding month.
This is the lowest figure achieved since January this year, when companies had mopped up Rs 879 crore via preferential allotment. Besides, the number of preferential issues dropped to 32 in September from 35 in August.
With the latest capital mop-up, the cumulative mobilised amount through preferential allotments stood at Rs 31,486 crore through 220 issuances in the first six months (April-September) of the financial year 2013-14.
“There were 32 preferential allotments (Rs 926 crore) listed on the BSE and NSE during September 2013 compared to 35 preferential allotments (Rs 1,062 crore) in August 2013,” SEBI noted.
Market participants said that the capital raised through the preferential allotment of shares has slowed due to tough secondary market conditions.
In the entire financial year 2012013, companies garnered around Rs 47,000 crore, marking a sharp rise from Rs 25,709 crore garnered in the earlier fiscal. In 2010011, companies had collected Rs 30,511 crore through preferential allotments.