Cos raise Rs 3,618 cr in Jan via IPOs, rights issues

The quantum of funds mopped up by India Inc through IPOs and rights issues jumped over two folds in January to Rs 3,617.9 crore from what they raised in December last year.

"During January 2011, Rs 3,617.9 crore was mobilised in the primary market through four issues as compared Rs 1,556.7 crore mobilised through six issues in December 2010," said the Capital Market Review by the Securities and Exchange Board of India (Sebi).

Corporates raised 1,556.7 crore in December through five IPOs and one rights issue.

The fund raising through IPOs and rights issues was good in October on account of the good response to the Coal India's public offer, which garnered over Rs 15,000 crore. It was not great in the next two consecutive months.

The regulator also said in January no listed company raised capital through qualified institutional placements.

The number of QIPs is December 2010 was only one and Rs 100 crore had been raised through it.

The number of preferential allotments, however, witnessed a surge in January 2011 with 40 such allotments raising Rs 2,093 crore.

In December 2010, a total of 24 preferential allotments had hit the primary market, raising a total of Rs 1,422 crore.

In January, the stock markets were a bit fluid with the equity benchmark Sensex going down by 12% during the month.