Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
Webinar :Join an expert panel for a webinar on Smart investments for a secure retirement January 28, 2021. Register now!

Economic Survey 2020: Fund raising via public, rights issue up 67% in 9MFY20; private placement up 19%

The resource mobilisation through public issue (equity) decreased in April-December 2019 compared to the similar period for previous year, continuing with the declining trend of last year.

January 31, 2020 / 09:30 PM IST

"The total money raised by public and rights issue increased 67 percent YoY to Rs 73,896 crore in the year 2019-20 (up to December 31, 2019) from Rs 44,355 crore in the corresponding period last year," the government said in its the Economic Survey 2019-20.

In the same period in 2018-19, the primary market resource mobilisation through public and rights issues had declined as compared to that in 2017-18.

Among them, resource mobilisation through public issue (equity) decreased in April-December 2019 compared to the similar period for previous year, continuing with the declining trend of last year.

During April-December 2019, 47 companies mobilised Rs 10,895 crore through public equity issuance compared to 103 companies raising Rs 13,947 crore in April-December 2018, indicating a decrease of 21.9 percent over the period, the survey said.

On the other hand, resource mobilisation through rights issues (equity) during April-December 2019 increased sharply with resource mobilization of Rs 51,255 crore, as compared to Rs 1,843 crore in the corresponding period of last year, it added.

Close

Image33112020

Meanwhile, the resource mobilisation through issuance of debt securities to public declined significantly to Rs 11,746 crore raised through 27 issues during April-December 2019, as compared to Rs 28,565 crore through 15 issues in same period last year.

The Survey noted that in the nine month period ended December 2019, Indian corporates preferred the private placement route to gear up the capital in the corresponding period in previous year.

"Rs 6.29 lakh crore was raised through 1,520 issues in April-December 2019 through private placements, against Rs 5.3 lakh crore through 2,006 issues in the corresponding period of previous year."

Image43112020

Survey said there were 225 issues which raised Rs 1.79 lakh crore through private placement of equity securities in nine months of FY20, compared to 335 issues which raised Rs 1.57 lakh crore in same period last financial year.

"Out of the 225 issues, there were 9 qualified institutional placement (QIP) allotments and 216 preferential allotments which raised Rs 34,029 crore and Rs 1.45 lakh crore, respectively, during April-December 2019, as compared to 11 QIPs allotments and 324 preferential allotments which raised Rs 6,958 crore and Rs 1.50 lakh crore, respectively, in April-December 2018," it added.

Further, the resource mobilization through private placement of corporate bonds stood at Rs 4.50 lakh crore during nine months period ended December 2019, as compared to Rs 3.73 lakh crore during same period in 2018.
Moneycontrol News
first published: Jan 31, 2020 09:30 pm

stay updated

Get Daily News on your Browser
Sections