New Delhi: Fund raising by Indian companies through primary market route jumped more than two-fold to over Rs 1,700 crore in August as against Rs 747 crore in July.
With the latest fund mop-up by companies, the cumulative amount mobilised for the current fiscal (April-August) has surged to Rs 3,967 crore through 18 issues, higher than Rs 1,140 crore raised via 13 issues during the year-ago period.
According to data available with market regulator Securities and Exchange Board of India (Sebi), companies mopped up a total of Rs 1,726 crore in August, higher than Rs 747 crore mobilised in July.
During August, a huge sum of Rs 1,659 crore was raised through rights issues by four companies - Reliance MediaWorks, Godrej Properties, Kokuyo Camlin and Asahi India Glass Ltd.
Amount raised through equity segment during the month included five initial public offerings (IPOs) -- GCM Commodity & Derivatives Ltd, VKJ Infradevelopers, Silverpoint Infratech, Kushal Tradelink, Tiger Logistics (India) Ltd -- listed on small and medium exchange (SME) platform.
Market experts said fund raising increased in August over the preceding month and most of the money was garnered through rights issues and only small companies hit the capital market to mop-up fresh capital.
Meanwhile, the benchmark S&P BSE Sensex plunged 726 points or 3.75 percent, during the period under review.
"During August 2013, Rs 1,726.1 crore were mobilised in the primary market by way of nine issues as compared to Rs 747 crore mobilised through three issues in July 2013, showing an increase of around 131.1 per cent the previous month," Sebi noted.
In the financial year 2012-13, companies had raked in Rs 32,455 crore via primary market, the lowest since 2008-09 when they had garnered Rs 16,220 crore.