Mop-up from IPOs, rights issue flat at Rs 2,962 cr in July

The quantum of funds mopped up by India Inc from IPOs and rights issues in July remained flat at Rs 2,961.90 crore, almost similar to the previous month, even though the number of firms, which came out with offers had fallen by almost one third of that in June.

Corporates had raised Rs 2,961.80 crore in June when a total of seven offers -- including three initial public offers (IPOs) and four rights issues -- hit the market, market regulator Sebi said.

As against this, only five offers hit the market during July, including three IPOs and one rights issue.

"During July, 2010, Rs 2,961.90 crore was mobilised in the primary market through five issues, compared to Rs 2,986.8 crore mobilised through seven issues in June," the latest issue of Capital Market Review released by the Securities and Exchange Board of India (Sebi) said.

Analysts said corporate India's fund-raising plans continued to move at a slow pace in June, following the pattern of the last few months, due to volatility in domestic and global markets.

However, the number of qualified institutional placements (QIPs) went up over two-fold in July, with five hitting the market during the month, as against only two in June.

The amount raised from QIPs jumped by a staggering over nine-fold to Rs 3,712 crore in July from Rs 421 crore in June, Sebi added.

All the QIPs in July were placed on both the Bombay Stock Exchange and the National Stock Exchange.

However, preferential allotments saw a decline in July, with only 38 coming out that raised Rs 1,232 crore. In June, a total of 59 preferential allotments had hit the primary market, raising a total of Rs 3,507 crore.

"There were 38 preferential allotments (of Rs 1,232 crore) listed on the BSE and NSE during July, 2010, compared with 59 allotments (of Rs 3,507 crore) in June. Twelve preferential allotments (of Rs 154 crore) were listed at both the BSE and NSE," Sebi said.