Mop-up from IPOs, rights issues jumps over four-fold in Sept
Reflecting investors' good appetite for stock markets, the quantum of funds mopped up by India Inc through IPOs and rights issues in September jumped more than four-fold to Rs 4,802.4 crore, over the previous month.business Updated: Nov 21, 2010 11:04 IST
Reflecting investors' good appetite for stock markets, the quantum of funds mopped up by India Inc through IPOs and rights issues in September jumped more than four-fold to Rs 4,802.4 crore, over the previous month.
This amount was mobilised through 18 offers, including 15 initial public offers (IPOs). Corporates had raised only Rs 1,049.7 crore in August when a total of six offers - comprising three IPOs and three rights issues - came up, market regulator Sebi said.
"During September 2010, Rs 4,802.4 crore was mobilised in the primary market through 18 issues as compared to Rs 1,049.7 crore mobilised through six issues in August 2010," said the latest issue of Capital Market Review released by the Securities and Exchange Board of India.
However, the number of qualified institutional placements (QIPs) more than halved in September, with only three hitting the market during the month, as against seven in August.
The amount raised from QIPs also fell by over 48 per cent to Rs 2,227 crore in September, from Rs 4,342 crore in August, Sebi added.
While 2 QIPs in September were placed on both the Bombay Stock Exchange and the National Stock Exchange, one was exclusively on the BSE.
The number of preferential allotments also saw a decline by more than half in September, with only 16 raising Rs 3,543 crore. In August, a total of 31 preferential allotments had hit the primary market, raising a total of Rs 3,417 crore.
In September, the stock markets witnessed hectic activity with the equity benchmark Sensex rising over 10 per cent during the month.