Companies raise Rs 48k cr via preferential allotment in Apr-Feb

This is much higher than Rs 23,260 cr mobilised in the whole of FY15

Indian firms raised a staggering over Rs 48,000 crore through issuance of shares to promoters and shareholders on a preferential basis in the first 11 months of 2015-16 to meet their business requirements.
This is much higher than Rs 23,260 crore mobilised in the whole of 2014-15.
The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirements and other general corporate purposes.
As per the latest data available with the Securities and Exchange Board of India (Sebi), funds garnered by listed companies through preferential allotment stood at Rs 48,187 crore in April-February of 2015-16.
However, in terms of numbers, total issues fell to 321, from 419 in the entire 2014-15.

Analysts said market volatility has forced many companies to opt for this route to mop up fresh capital.
Preferential allotment serves as an alternative mechanism of resource mobilisation, wherein a listed firm issues shares or convertible securities to a select group of shareholders on a private placement basis.
Of the total funds raised, the maximum was Rs 16,382 crore in October and the lowest Rs 579 crore in December.