Fund-raising via primary market rises to Rs 7,200 cr in Oct

Cumulative fund mobilisation by companies for April-October of 2013-14 fiscal was Rs 18,636 crore

Fund-raising by Indian companies through the primary market route jumped 89 per cent to Rs 7,200 crore in October on the preceding month. With this, the cumulative fund mobilisation by companies for the first seven months (April-October) of 2013-14 was Rs 18,636 crore compared with Rs 9,484 crore raised during the year-ago period.      

According to the data available with the Securities and Exchange Board of India (Sebi), companies mopped up Rs 7,279 crore in October, as against Rs 3,847 crore mobilised in September.      

Of the Rs 7,279 crore raised in October, a major chunk of the amount (Rs 7,195 crore) was garnered through debt route and the remaining Rs 84 crore via issuance of equity shares.

The amount raised through the equity segment during the month included five initial public offerings (IPOs) of VCU Data Management, SRG Securities Finance, Amrapali Capital and Finance Services, Stellar Capital Services and Mitcon Consultancy & Engineering Services — all listed on the small and medium exchange (SME) platform.      

Also, Rs 40 lakh was mopped up through rights issues by Marshal Sons & Company (India).      

According to experts, the fund-raising increased after Reserve Bank of India Governor Raghuram Rajan announced measures to boost the weakening rupee and revive economic growth.     

The rise in fund mobilisation coincided with 1,785 points or 9.2 per cent surge in the 30-scrip BSE sensitive index (Sensex) during October.      

"During October, Rs 7,279 crore were mobilised in the primary market (equity and debt issues) by way of 10 issues as compared to Rs 3,847 crore mobilised through 11 issues in September, showing an increase of 89.2 per cent from the previous month," Sebi noted.