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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi must not be lax in weeding out mutual fund houses

    Last May, capital market regulator Securities and Exchange Board of India (Sebi) amended the Sebi (mutual funds) regulations, 1996, directing all fund

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Rajgopal Nidamboor

Let the spirit of sport pervade everyday life

Sport, like meditation, is nothing short of a spiritual act. ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture