Indian cos fund mop-up down 36% at Rs 31,000 cr in FY13

Indian companies raised nearly Rs 31,000 crore from the public issuance of equity and debt in FY13, a slump of 36% from the preceding year.

According to latest data available with market regulator Sebi (Securities and Exchange Board of India), a total of Rs 30,859 crore worth of fresh capital were mopped-up from equity and debt market during FY13, which was way below than Rs 48,468 crore garnered in FY12.

Going by the statistics, it was mostly debt market that was leveraged to meet the funding requirements of businesses in the past fiscal as compared to capital raised through sale of shares through instruments like initial public offering (IPO) and rights issue.

A total of Rs 15,386 crore were raised from the debt market via 11 issues in FY13, much lower than Rs 35,611 crore garnered through 20 issues in the preceding fiscal.

Interestingly, the last two financial years have seen 16 rights issue each, where shares are issued by the companies to their existing investors as per their holding at a pre-determined price and ratio.

However, capital raised through the route increased to Rs 8,945 crore in FY13 from Rs 2,375 crore in the preceding fiscal.

The year (FY13) has seen an estimated 33 IPOs, as against 34 in FY12, while the amount of funds raised through the instruments rose to Rs 6,529 crore from Rs 5,904 crore in FY12.

"The cumulative amount mobilised for the financial year FY13, stood at Rs 30,859.4 crore through 60 issues as against Rs 48,468.1 crore raised through 71 issues during the financial year FY12," Sebi noted.

In terms of months, a total of Rs 6,718 crore was raised in September, when the government initiated a slew of reforms measures, followed by Rs 5,605 crore in December.