Indian cos mop up nearly Rs 9,500 cr via primary mkt in Apr-Oct

Indian companies mopped up nearly Rs 9,500 crore through primary market in the first seven months of the current fiscal, a sharp 41% decline from the year-ago period.

The companies have garnered a total of Rs 9,483 crore through public issues of equity and debt during April-October period of current fiscal (2012-13), lower than Rs 16,131 crore raked in the year-ago period, as per latest data available with the market regulator Sebi.

A large chunk of the funds were raised through rights issue route. The companies garnered Rs 6,749 crore through 10 rights issue, where shares are issued to existing investors as per their holding at pre-determined price and ratio.

Besides, companies have also raked in Rs 2,217 crore via six issues of debt securities and Rs 517 crore through 14 initial public offerings (IPO).

Interestingly, most of the IPO were listed on small and medium enterprise platform.

"The cumulative amount mobilised for the financial year 2012-13, so far, stood at Rs 9,483.2 crore through 30  issues as against Rs 16,130.9 crore raised through 47 issues during the corresponding period in 2011-12," Sebi said.

In terms of monthly analysis, firms have mopped up Rs 8,335 crore in September, making it the highest in the current fiscal so far, as various reform measures announced by the government improved investor sentiment in the month.    

According to Sebi, Rs 8.6 crore were mobilised in the primary market by way of one issue in October compared to Rs 8,334.9 crore mobilised through 16 issues in the previous months, indicating a plunge of 99.9% over the previous month.