Fund-raising by issuance of shares to promoters and shareholders on preferential basis has hit a four-month high of Rs 3,366 crore in October.
New Delhi: Fund-raising by issuance of shares to promoters and shareholders on preferential basis has hit a four-month high of Rs 3,366 crore in October.
According to the latest data released by the Securities and Exchange Board of India (Sebi), funds garnered by firms through preferential allotment route surged to Rs 3,366 crore in October after plunging to a nine-month low of Rs 926 crore in September.
The October figure has reached the highest level since June, when the funds had mopped up a total of Rs 11,878 crore through preferential allotments.
However, the number of preferential issues slipped to 31 in October from 32 in the preceding month.
With the latest capital mop-up, the cumulative mobilised amount through preferential allotment route stood at Rs 34,851 crore from 251 issuance for the first seven months of the current financial year (April-October).
"There were 31 preferential allotments (Rs 3,366 crore) listed at BSE and NSE during October 2013 as compared to 32 preferential allotments (Rs 926 crore) in September 2013," Sebi said.
According to experts, the fund raising increased after new RBI Governor Raghuram Rajan announced measures to boost the weakening rupee and revive economic growth.
The increase in fund-raising has coincided with BSE's barometer index Sensex surging 1,785 points, or 9.2 percent, in October.
In 2012-13, companies garnered around Rs 47,000 crore, marking a sharp rise from Rs 25,709 crore collected through preferential allotments to promoters and shareholders in the preceding fiscal.
In 2010-11, companies had collected Rs 30,511 crore through preferential allotments.