Fund raising via preferential allotment rises 8% in April-October


Indian companies garnered over Rs 26,000 crore through issuance of shares on preferential basis during April-October of the ongoing fiscal, a jump of nearly 8 per cent from the year-ago period.

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

As per the Securities and Exchange Board of India data, funds raised by listed firms through preferential allotment stood at Rs 26,361 crore in the first seven months of 2017-18.

The funds accumulated during April-October of 2017-18 are 7.89 per cent higher as compared to same period of the previous financial year, when the companies mopped up Rs 24,433 crore.

In terms of numbers, 235 issues were witnessed in the first seven months of the current fiscal as compared to 256 during the same period last year.

During April-October of 2017-18, September was the busiest month, with the firms raising Rs 8,144 crore through the preferential allotment route, followed by August (Rs 5,493 crore), June (Rs 4,825 crore) and October (Rs 3,128 crore).