Cos raised Rs 5,600 cr in Dec via public issues

The quantum of funds raised by India Inc through initial public offers and rights issues went up by over five-fold to Rs 5,600 crore in December over the previous month.

Companies had raised Rs 1,601 crore in November with two issues, according to the 'Capital Market Review' by market regulator the Securities and Exchange Board of India (Sebi).

"During December, 2011, an aggregate amount of Rs 5,600 crore was mobilised through three public debt issues compared to two issues worth Rs 1,061 crore in November, 2011," Sebi said.

The regulator said that the amount mobilised during the April-December period stood at Rs 23,003 crore through 51 issues as against Rs 50,480 crore raised through 66 issues during the corresponding period in 2010-11.

Experts said that the volatile nature of the market and the global economic slowdown have prompted companies to stay away from coming out with new issues.

Sebi also said that there was only a single Qualified Institutional Placement (QIPs) in December which raised Rs 68 crore. In the previous month, there were no QIPs.

Preferential allotments, however, witnessed a decline in December, 2011, with 19 such allotments raising a total of Rs 517 crore. In comparison, there were 21 preferential allotments executed in the primary market in November but they had raised only a total of Rs 169 crore.

The stock market witnessed a downward swing in December, with the benchmark Sensex losing over 6.6% during the month.