Mop up from IPOs, rights issues down over 85% in Dec

IPOs and rights issues by India Inc went down by over 85 per cent to Rs 1,556.7 crore during December, 2010, as against the previous month on account of less activity during the year-end period.

This amount was mobilised through six offers, including five initial public offers (IPOs).

Corporates had raised Rs 10,534.4 crore in November when a total of eight offers -- including four IPOs and two follow-on offers -- came up, market regulator Sebi said.

"During December 2010, Rs 1,556.7 crore was mobilised in the primary market through six issues compared to Rs 10,534.4 crore mobilised through eight issues in November, 2010," said the latest issue of the Capital Market Review released by the Securities and Exchange Board of India (Sebi).

A major reason for the massive fall in IPO and rights issue collections in December was slackening of activities in the run up to the end of the calender year, experts said.

During December, the number of qualified institutional placements (QIPs) issues also went down to only one from seven in the previous month.

The amount raised from QIPs fell to a merely Rs 100 crore in December from Rs 1,349 crore in November, Sebi added.

The solitary QIP in December was launched in both the BSE and the NSE.

The number of preferential allotments, however, went up during December to 24, with Indian companies raising a total of Rs 1,422 crore, an increase of almost three-fold vis-a-vis the previous month.

There were 17 preferential allotment issues held in November, which raised a total of Rs 491 crore.

In December, the stock markets witnessed a little activity with the Bombay Stock Exchange (BSE) benchmark Sensex going up by above 5 per cent.