India Inc raised Rs 13,938 crore (Rs 139.38 billion) through 26 public and rights issues in the first five months of the 2010-11 financial year, compared to Rs 11,921 crore (Rs 119.21 billion) from 15 offers during the April-August period of the previous fiscal, according to market regulator SEBI.
"The cumulative mobilised amount for the period April- August, 2010-11, stood at Rs 13,938.80 crore (Rs 13.938 billion) through 26 issues over Rs 11,921 crore (Rs 119.21 billion) through 15 issues during the corresponding period in 2009-10," Securities and Exchange Board of India (SEBI) said in its monthly bulletin.
Out of Rs 13,938.80 crore (Rs 139.38 billion), Rs 9,668.40 crore (Rs 96.68 billion) was mobilised through 16 initial public offers, while the mop-up from the lone follow-on public offer (FPO) was Rs 959.40 crore (Rs 9.59 billion).
Among the companies that raised money from the primary capital market were state-run Satluj Jal Vidyut Nigam (SJVN) through an IPO and Engineers India Ltd through a FPO. Other companies that tapped the capital markets include Jaypee Infratech and SKS Microfinance.
The microfinance company raised around Rs 1,600 crore (Rs 16 billion), while Jaypee Infratech mobilised Rs 2,200 crore (Rs 22 billion) through its IPO this fiscal. In addition, there were eight rights issue during the April-August period, through which companies raised Rs 2,811 crore (Rs 28.11 billion).
The government has set a Rs 40,000 crore (Rs 400 billion) target for disinvestment this fiscal. It had raised around Rs 2,000 crore from these two issues.
Other public issues in the pipeline include Coal India's forthcoming IPO and disinvestment in Power Grid, Hindustan Copper, Manganese Ore India Limited and SAIL.
During August, 2010, Rs 1,049.7 crore (Rs 10.49 billion) was mobilised from the primary market through six issues as compared to Rs 2,961.9 crore (Rs 29.61 billion) through five issues in July, 2010.
The amount mobilised through IPO and rights issues during August, 2010, stood at Rs 919.6 crore (Rs 9.19 billion) and Rs 130.1 crore (Rs 1.3 billion), respectively, compared to Rs 1,958.6 crore (Rs 19.58 billion) and Rs 43.9 crore (Rs 439 million) in July 2010.
