India Inc mop up Rs 1,200 cr in June via IPOs, rights

The quantum of funds mopped up by India Inc through IPOs and rights issues fell by 75% month-on-month to Rs 1,195.6 crore in June 2011, over the amount raised in May this year.

Corporates had raised a total of Rs 4,781.1 crore through four IPOs and one follow-on public offer (FPO) in May.

"In June 2011, Rs 1,195.6 crore was mobilised in the primary market through seven issues, as compared to Rs 4,781.1 crore mobilised through five issues in May 2011, showing a decrease of 75% over the previous month," said a 'Capital Market Review' by the Securities and Exchange Board of India (Sebi).

Of the seven issues in June, three each were initial public offers (IPOs) and rights issues, while one was a public issue.

Fund raising through IPOs and rights issues was quite good in FY11, 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.

The Sebi also said that only one listed company raised capital worth Rs 513 crore through Qualified Institutional Placement (QIPs) in June.

In the previous month, there was only one single QIP which had raised Rs 55 crore.

The number of preferential allotments witnessed a decline in June 2011, with 22 such allotments raising Rs 1,689 crore.

In contrast, in May, a total of 25 preferential allotments were executed in the primary market, raising a total of Rs 5,931 crore.