Seven companies, including Reliance Industries and JP Associates, have raised over Rs 14,000 crore by way of treasury stock sale, private placements and bond issues in the second quarter of this fiscal.
"The companies are in a quick money raising spree encashing the upbeat mood of the market and in order to meet their expansion plans or to use for any other purposes," brokerage firm SMC Global Vice President Rajesh Jain said.
The country's most valued firm, Reliance Industries, garnered Rs 3,188 crore by way of treasury share sale. The Petroleum Trust, one of the promoter entities in RIL, sold 1.5 crore equity shares of the company at an average price of about Rs 2,125 a piece in open market, according to the data available on the Bombay Stock Exchange.
Reliance Industrial Investments and Holdings, a wholly- owned subsidiary of RIL, is the sole beneficiary of the Trust.
JP Associates also sold some of its treasury stock to raise Rs 1,191 crore. Treasury stock refers to shares of a company which are not issued to the public, as some are kept in the companies treasury to be used to create extra cash when needed.
The buoyant markets have also helped companies to raise funds by private placement of shares with institutional buyers.
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The country's third largest private sector lender, Axis Bank, raised over Rs 4,880.61 crore through qualified institutional placement by issuing a total of 5.38 crore equity shares at Rs 906.70 per share, the BSE data showed.
Wind power major Suzlon Energy's promoters have raised funds to the tune of Rs 689 crore by offloading seven crore shares representing 4.50 per cent stake in the company in the open market.
The promoters of the company intend to provide the funds raised through the stake sale to Suzlon either in form of debt or equity subject to necessary approvals.
For a retail investor, Jain said that funding raising by companies is a positive thing since the price of their stocks may further move up, as there are deep pockets in the market waiting to invest in the stocks they hold.
Pharma firm Glenmark Pharmaceuticals raised Rs 413 crore and IT software services provider 3i Infotech raised Rs 317.81 crore by allotting equity shares to qualified institutional buyers on preferential basis.
The companies such as domestic mining company Sesa Goa are in the process to raise $500 million (nearly Rs 2,400 crore) by offering foreign currency convertible bonds (FCCBs) for financing the company's growth plans.