The quantum of funds raised by India Inc through initial public offers and rights issues fell to Rs 3,029.1 crore in September this year, a 21.6 per cent decline in comparison to August.
“During September 2011, Rs 3,029.1 crore was mobilised in the primary market through 12 issues compared with Rs 3,865.7 crore mobilised through 11 issues in August 2011, showing a decrease of 21.6 per cent over the month,” according to the latest ‘Capital Market Review’ by market regulator Securities and Exchange Board of India (SEBI).
Of the 12 issues in September, nine were initial public offerings (IPOs), one was public debt issue and two were rights issues. Corporates raised a total of Rs 3,865.7 crore through four public debt issues, four IPOs and three rights issues in August.
SEBI also said no Qualified Institutional Placements (QIPs) took place in September. In the previous month, there was a single QIP which raised Rs 8 crore.
Preferential allotments also witnessed a decline in September, with 25 such allotments raising Rs 499 crore. In comparison, 29 preferential allotments were executed in the primary market in August, which raised Rs 688 crore.
After a period of volatility, the stock market witnessed an upswing in September, with the benchmark Sensex gaining 8.9 per cent during the month.