Cos raise Rs 4,781 cr in May via IPOs, rights issues

The quantum of funds mopped up by India Inc through initial public offers (IPOs) and rights issues went up by over 136% to Rs 4,781.1 crore in May, 2011, compared to the amount raised in April this year.

"During May, 2011, Rs 4,781.1 crore was mobilised in the primary market through five issues, as compared to Rs 2,025.7 crore mobilised through six issues in April, 2011, an increase of 136% over the previous month," said a 'Capital Market Review' by market regulator Securities and Exchange Board of India (Sebi).

Of the five issues in May, four were IPOs, while one was a follow-up public offer (FPO).

Corporates had raised Rs 2,025.7 crore through six IPOs in April.

Fund raising through IPOs and rights issues was quite good  in FY10-11, with companies raising a total of Rs 67,608.6 crore.

Among the major fund raising exercises carried out last year was Coal India's public offer, which garnered over Rs 15,000 crore.

Sebi also said that only one listed company raised capital worth Rs 55 crore through Qualified Institutional Placement (QIPs) in May. No QIPs were filed in the previous month.

The number of preferential allotments witnessed a decline in May, 2011, with 25 such allotments raising Rs 5,931 crore.

In contrast, in April, a total of 30 preferential allotments were executed in the primary market, raising a total of Rs 8,776 crore.

In May, the stock market had seen a bit of downslide, with the benchmark Sensex losing 3.9% during the month.