Cos raise Rs 21,000-cr through preferential route in H1' FY16

According to Sebi, companies have raked in a total of Rs 20,874 crore in April-September of 2015-16

Indian firms raised close to Rs 21,000 crore in the first six months of 2015-16 by issuance of shares to promoters and shareholders on a preferential basis, an increase of 11% over the amount garnered in the same period last year.

The funds have been raised for expansion plans and to support working capital requirements.

As per the data compiled by the Securities and Exchange Board of India (Sebi), companies have raked in a total of Rs 20,874 crore in April-September of 2015-16, higher than Rs 18,818 crore raised in the year-ago period.

In September alone firms mobilised Rs 1,031 crore although most of the capital was garnered in the first two months of the current fiscal. Companies had mobilised Rs 10,485 crore in April and another Rs 5,407 crore in May.

However, the number of preferential allotments fell to 188 during the period under review from 254 in the first half of 2014-15.

Firms tap the preferential route through issuance of equity shares, fully or partly convertible debentures or other financial instruments like share warrants which will be converted into or exchanged with equity shares at a later date.

The allotment is done to a select group of investors -- promoters and non-promoters -- on a private placement basis.