Companies raise Rs 240 cr from rights issue in Feb

Capital mobilised by Indian companies through rights issues surged nearly four times to Rs 240 crore in February compared to the preceding month.

This has taken the cumulative capital raised by companies through issuance of shares on rights basis to Rs 2,471 crore for the April-February period of fiscal 2013-14.

ed through riHowever, the amount is substantially lower than Rs 8,225 crore raisghts issue in the same period a year-ago.

According to the Sebi data, companies mopped up a total of Rs 240 crore in February through two issues, an increase from Rs 65 crore mobilised in January.

Under the rights issue, shares are issued to existing investors of an entity as per their holding at pre-determined price and ratio.

The two rights issue belonged to Mukand and Wheels India which opened on February 20 and February 26 respectively.

During April-February period of the previous fiscal years, the firms had raised Rs 2,207 crore in 2011-12, Rs 4,523.6 crore in 2010-11, Rs 4,982 in 2009-10 and Rs 11,997 crore in 2008-09.