Fund raising via preferential allotment drops 34%

Tags: News
Fund raising by issuance of shares to promoters and shareholders on preferential basis has plunged by 34 per cent to Rs 2,159 crore in July as compared to the preceding month.

However, fund raising through preferential allotments is expected to increase in the coming months as many companies have lined-up their plans.

According to latest data available with the stock exchanges, funds garnered by companies via preferential allotments declined to Rs 2,159 crore in July from Rs 3,271 crore in June.

Also, the number of preferential issues dropped to 29 in July from 44 in the previous month.

Market analysts said that companies have opted QIP (Qualified Institutional Placement) route to garner fresh capital instead of preferential mode.

The decline in fund-raising in July is coincided with the BSE's benchmark index Sensex climbing two cent during the period.

Overall, fund raising on preferential basis has reached to Rs 13,732 crore in the current financial year (2014-15). In the entire 2013-14 fiscal, companies had mopped up more than Rs 46,000 crore through this route.

EDITORIAL OF THE DAY

  • Trashing the Aadhar project without logic or reason serves no purpose

    Aadhar number and cards enrollment is a sovereign exercise undertaken by the Centre over the last 10 years to essentially capture the socio-economic d

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: SRK’s ALPHABET SOUP

On Saturday, the Enforcement Directorate sent a show cause notice ...

Gautam Datt

The Congress quandary

A government without an opposition is an unfortunate scenario in ...

Zehra Naqvi

Success lies in learning to embrace failure

Among the thronging multitudes that offer you lessons on success, ...