Fundraising through rights issues falls sharply in January-July period

Experts said promoters opt for rights issues in a bearish market as they don't want to dilute their holdings when the valuations are unattractive

The number of rights issues and funds raised through them has fallen sharply in the first seven months of 2021. Till July 2021, only four rights issues hit the market and cumulatively raised Rs 3,623 crore. In 2020 during the same period, 11 issues had raised Rs 63,537 crore.  Even when one deducts Reliance Industries's rights issue, which raised Rs 53,125 crore, the total amount raised during the previous year in the first seven months comes to Rs 10,411 crore. And ten issues had hit the market almost thrice in terms of the quantum of funds raised and the number