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Companies raise Rs 13,000 cr via preferential route in April-August FY17

Indian firms raised nearly Rs 13,000 crore through issuance of shares to promoters and shareholders on preferential basis during April-August of 2016-17, a slump of 35 percent from the year-ago period.


Companies raise Rs 13,000 cr via preferential route in April-August FY17

New Delhi: Indian firms raised nearly Rs 13,000 crore through issuance of shares to promoters and shareholders on preferential basis during April-August of 2016-17, a slump of 35 percent from the year-ago period.

Companies had garnered Rs 19,843 crore in April-August of 2015-16.

The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirements and other general corporate purposes.

Preferential allotment serves as an alternative mechanism of resource mobilisation, wherein a listed firm issues shares or convertible securities to a select group of shareholders on a private placement basis.

As per the latest data available with the Securities and Exchange Board of India (Sebi), funds mobilised by listed companies through preferential allotment stood at Rs 12,876 crore in the first five months of the current financial year.

Through such allotments, companies raised Rs 3,829 crore in April, Rs 5,218 crore in May, Rs 2,009 crore in June, Rs 1,470 crore in July and Rs 350 crore in August.

In terms of numbers, 187 preferential allotments were made in the first five months of the current fiscal compared with 154 a year earlier.

In 2015-16, total funds raked in by listed companies via preferential allotment was at Rs 50,513 crore.

 

From Zee News

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