Rs 136cr Issues Failed In April-August

All the four issues that devolved opened in June and are from the textile industry. According to Prime Database, which has compiled the data, this is more a coincidence than owing to any particular reason.

Of the total amount of Rs 2,228 crore raised during the period from equity issues and Rs 2181.71 crore through other instruments, including bond issues, the total size of devolved equity issues was Rs 136.30 crore and that of refunded issues Rs 478.01 crore.

The primary market issues which have devolved this year included BSM Knitfab India (Rs 4.93 crore, June 29); Elque Polyesters (Rs 15.98, June 12); Parasrampuria Synthetics (Rs 80 crore, June 27); and Pasupati Fabrics (Rs 35.39 crore, June 6).

"Though the number of issues devolved seem very low compared to the total number of issues hitting the market, sources point out that the actual number that could have devolved but `managed to sail through' could be as high as 80 per cent," Prithvi Haldea of Prime Database said.

The companies which had to refund money were Comfort Knitwear; Delicious Investments and Finance, Gentle Cosmetics Impex, Kwality Reframake, Metropoli Overseas, Prachi Leasing & Finance, Risingsun Engineers, Setech Electronics Swan Mining & Mineral, Umakant Leasing & Finance and Vikas Spinning & Weaving Mills

In August, 85 issues hit the market, including four mutual fund schemes.

Of these, only 14 had their projects appraised by a financial institution or bank.