INSUBCONTINENT EXCLUSIVE:
New Delhi: Indian companies garnered nearly Rs 1,00,000 crore crore through issuance of shares on preferential basis in April-June quarter
of the current fiscal, registering 11-fold rise over the year-ago period.
The firms had mopped up Rs 9,037 crore in the corresponding period
previous fiscal.
The funds mobilised during the June 2018 quarter were also higher than what the companies had raised during the entire
2017-18, when they could manage only Rs 59,500 crore.
The data available with the Securities and Exchange Board of India showed that funds
raised by listed firms through preferential allotment stood at Rs 99,811 crore during the first quarter of 2018-19.
While the firms had
raised Rs 72,450 crore during April 2018, they had mobilised Rs 2,812 crore and Rs 24,549 crore in May and June, respectively.
The funds
were garnered for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.
Preferential
allotment serves as an alternative mechanism of resource mobilisation wherein a listed issuer issues shares or convertible securities to
select persons or entities.
Also, there were 125 issues during the first quarter as compared to 129 in the corresponding period previous
