India Inc raises Rs 23730 cr via IPOs

India Inc has raised a whopping Rs 237.3 billion (Rs 23,730 crore) through initial share sales in April-January, which is nearly 10 times than that mobilised during the corresponding period last fiscal.

With the stock market re-emerging as the preferred place for fund raising, as many as 28 companies came out with initial public offers during April-January 2009-10 raising a total of Rs 23,731.88 crore.

This is almost 10 times higher than Rs 20.59 billion (Rs 2,058.51 crore) mobilised by 20 companies during the same period in 2008-09, according to market regulator SEBI.

During the 10-month period, two companies also came out with further public offers raising a total of Rs 644.7 million, while none did this during the same period previous fiscal.

In total, there were 30 public issues which mobilised Rs 238 billion (Rs 23,796.35) crore against 20 in the same period last year garnering Rs 2,058.51 crore, SEBI said in its February bulletin.

However, rights issue seems to have lost charm for companies as the amount mobilised through the route dropped 83 per cent to Rs 31.32 billion (Rs 3,132.09 crore) this fiscal. There were 19 rights issues, which mobilised Rs 3,132.09 crore against 21 in the same period last year that raised Rs 120 billion (Rs 11,997.31 crore).

Meanwhile, institutional placement seems to have gained favour with Indian corporates as a host of them mobilized Rs 391.44 billion (Rs 39,144 crore) during the April-January period of the current fiscal through the route.

During the current financial year so far, there were 54 Qualified Institutional Placements, which mobilised Rs 391.44 billion ( Rs 39,143.89 crore) against two QIPs during the same period last year that raised Rs 1.9 billion ( Rs 188.82 crore)," SEBI said.