UPDATE:India Inc raises Rs 4,700cr in first 2 months of FY'10: Report

India Inc has mobilised a whopping Rs 4,700 crore in the first two months of this financial year thanks to the revival in market sentiments and going forward this capital raising activity is set to gain further momentum, a report says.

Fund raising through various instruments like rights issues, initial public offers (IPOs) and qualified institutional placements (QIPs) during the first two months of FY'10 rose by over five-fold to Rs 4,700 crore than the first two months of FY'09, brokerage firm SMC Capitals said in a report.

"This massive fund raising can be attributed to the revival in the QIP market, which was the major source for fund mobilisation. Going forward, the fund raising spree is likely to be robust as lot many IPOs are waiting in the pipeline," SMC Capital equity head Jagannadham Thunuguntla said.

Even though there are no initial public offers and rights issues during the first two months of the current financial year, there was a rush of Qualified Institutional Placements (QIPs) from several corporates.

Going forward the capital raising activity by corporate India in the current financial year is going to gain further momentum as the IPOs are expected to stage a comeback in the coming months especially that of public sector IPOs.

"We can say that the next five months would be better than the last five months," Thunuguntla added.

The total fund raising by corporates in India during April-May 2008 was Rs 931.75 crore while in the first two months of this fiscal India Inc has mobilised as much as Rs 4,777.59 crore, the report said.

Year-on-year there has been a drastic change in the fund raising options for India Inc. During the first two months of FY'09, IPOs were the flavour of the season as a total of Rs 506.86 crore was mopped up, but this fiscal QIPs are in vogue as over Rs 4,777 crore was mobilised in the April-May period.

Various public sector enterprises (PSEs) like Rites, National Hydro Power Corp, Bharat Oman Refineries, UTI Asset Management Company and Oil India have filed for public issue with market regulator SEBI.

Besides, there are about 25 PSEs recommended by the disinvestment committee which can be potential targets of divestment and there are those PSEs which were slotted for disinvestment but for which the process was later called off for various reasons.

Enthused by improving market conditions, eight real estate firms, including Unitech, Parsvnath and Sobha Developers, are looking to raise more than Rs 25,000 crore together through sales of shares, mostly to foreign investors.

Among these realty firms Unitech tops the tally with plans to raise over Rs 11,000 crore.

It is followed by HDIL (about Rs 3,000 crore through QIP and Rs 850 crore through promoter warrants), Parsvnath and Akruty (Rs 2,500 crore each), Anantraj (Rs 2,000 crore), Sobha Developers (Rs 1,500 crore), Puravankara (Rs 750 crore) and Orbit Corp (Rs 500 crore through QIP and an unidentified amount through promoter warrants).