Fund mop-up via preferential allotment hits 6-month high in Dec

Funds garnered by companies through preferential allotments surged from Rs 756 crore in Nov to Rs 6,943 crore in Dec

Fund-raising by issuance of shares to promoters and shareholders on preferential basis by the companies jumped to a six month high of Rs 6,943 crore in December.

With this fund raising, the total money garnered by companies reached Rs 48,318 crore in 2013.

According to the latest data available with the market regulator Securities and Exchange Board of India (Sebi), funds garnered by companies through preferential allotments surged from Rs 756 crore in November to Rs 6,943 crore in December.

The December figure has reached the highest level since June this year, when companies had mopped up a total of Rs 11,878 crore via preferential allotments route.

Besides, the number of preferential issues rose to 27 in December from 24 in the preceding month.

Market participants said that capital raised through the preferential allotments of shares surged in December even as secondary market conditions remained volatile.

The sharp surge in fund raising coincides with about 379 points or 1.82 per cent rally in the BSE's benchmark Sensex during December.

"There were 27 preferential allotments (Rs 6,943 crore) listed at BSE and NSE during December 2013 as compared to 24 preferential allotments (Rs 756 crore) in November 2013," Sebi noted.