Funds raised by Indian firms plunges by massive 86.56 per cent

Funds raised by Indian firms by issuing shares to institutional investors plunged by a massive 86.56 percent to nearly Rs 4,070 crore in the first four months of the current fiscal.

During April-July of 2017-18, the firms had mobilized Rs 30,279 crore.

As per the data available with the Securities and Exchange Board of India, the capital mopped up by the listed firms through qualified institutional placement (QIP) route stood at Rs 4,070 crore during April-July of 2018-19.

The funds were mobilized for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.

QIP is an alternative mode of resource raising available for listed companies to mobilize funds from the domestic market.

In April 2018, the firms garnered Rs 1,862 crore, while the amount mopped up by them in May and June 2018 stood at Rs 1,008 crore and Rs 1,200 crore, respectively. No funds were raised during July 2018.

Also, there were 9 issues during April-July of 2018-19 compared to 12 in the corresponding period last fiscal.

Through the QIP route, during 2017-18, the firms raised Rs 67,257 crore via 53 issues.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)