Moneycontrol Be a Pro
Get App
Last Updated : Mar 22, 2016 01:52 PM IST | Source: PTI

Fund-raising via rights issue doubles to Rs 8,785 cr

The largest rights issue during the period was from Tata Motors which alone raked in Rs 7,498 crore.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Fund-raising by Indian companies through rights issue doubled to Rs 8,785 crore in the first 10 months of the current fiscal, indicating growing traction among domestic firms to mop-up fresh capital via this route.


The largest rights issue during the period was from Tata Motors which alone raked in Rs 7,498 crore.


Most of the funds were raised for expansion, repayment of debt and working capital requirements.

Close

In the rights issue mode, shares are issued to existing investors at a pre-determined price, normally at a discount, in proportion to their holdings.


Companies garnered Rs 8,785 crore during April-January period of the current fiscal, about double the Rs 4,402 crore raised in the year-ago period, according to latest data with the Securities and Exchange Board of India.


Eleven firms took this route to mobilise funds in 10 months, as against 14 in the April-January period of the 2014-15 fiscal.


In addition, B N Rathi Securities Ltd, JMC Projects (India) Ltd, Ashima Ltd, Everlon Synthetics Ltd, Hydro S&S Industries Ltd and Universal Cables Ltd were among those which raised funds through the rights issue.



The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Mar 22, 2016 01:48 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant