Fund mop-up via preferential allotment hit 7-month low in July
Sep 03 2013 , New Delhi
According to the latest data available with the market regulator Securities and Exchange Board of India (Sebi), funds garnered by companies through preferential allotments declined to Rs 1,605 crore in July after touching a 13-month high of Rs 11,878 crore in the preceding month.
The June figure has reached the lowest level since January this year, when companies had mopped-up a total of Rs 879 crore via preferential allotments route.
Besides, the number of preferential issues dived to 27 in July from 33 in the preceding month.
With the latest capital mop-up, the cumulative mobilised amount through preferential allotment route stood at nearly Rs 29,500 crore through 153 issuance for the financial year 2013-14 so far.
"There were 27 preferential allotments (Rs 1,605 crore) listed at BSE and NSE during July 2013 as compared to 33 preferential allotments (Rs 11,878 crore) in June 2013," Sebi noted.
Market participants said capital raised through the preferential
allotments of shares have slowed due to tough secondary market conditions.
The sharp fall in fund raising is coincided with about 232 points or 1.2 per cent plunge in the BSE's benchmark Sensex during the month.
In the entire financial year 2012-13, companies have garnered around Rs 47,000 crore, marking a sharp rise from Rs 25,709 crore garnered through preferential allotments to the promoters as well as shareholders in the earlier fiscal.
In 2010-11, companies had collected Rs 30,511 crore through preferential allotments.