Fund mobilisation by Indian companies through issuance of shares to institutional investors declined 81 per cent to nearly Rs 70 billion during the first half of the financial year 2018-19.
The firms had raised Rs 366.53 billion during the corresponding period of the previous financial year.
On a quarterly basis, the listed companies garnered Rs 40.70 billion during the three months ended June 30, 2018 and Rs 28.88 billion during the July-September period, through the qualified institutional placement (QIP) route, the latest data available with the Securities and Exchange Board of India showed.
The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.
QIP is an alternative mode of resource raising available for listed companies to raise funds from the domestic market.
The firms garnered Rs 69.58 billion through the QIP route during the April-September period of 2018-19. This is 81.02 per cent less than the amount raised by the companies in the year-ago period.
Also, there were 11 issues during the six months under consideration compared to 16 in the corresponding period of the previous fiscal.
During the financial year 2017-18, the firms raised Rs 672.57 billion via 53 issues through the QIP route.