Fund-raising by Indian firms fall 17 pct in October

Indian firms raised funds worth Rs 36,176 crore by issuing securities on public and private placement basis during October, registering a decline of 17 per cent from the preceding month.

In September, the firms had mobilised Rs 43,915 crore.

According to the latest data available with Securities and Exchange Board of India (Sebi), the capital garnered by the companies through public issue stood at Rs 638 crore which witnessed a steep fall from Rs 8,701 crore raised during the last month.

However, fundraising from private placement saw a meagre increase to Rs 35,538 crore from September, when it stood at Rs 35,214 crore.

Among the public issue, initial public offerings (IPOs) contributed Rs 525 crore, while debt issue was the highest contributor to Rs 31,894 crore in the private segment.

Raising funds via private placement involves sale of securities to a relatively small number of select investors. Public issue offers securities of a company to the public to garner funds.

(With inputs from agencies.)