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Mop-up from IPOs, rights issues down 45% in Nov

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 1:37 AM IST

After touching a high in October on account of the Coal India offer, the quantum of funds mopped up by India Inc through IPOs and rights issues in November dipped nearly 45 per cent to Rs 10,556.9 crore.

This amount was mobilised through eight offers, including four initial public offers (IPOs).

Corporates had raised as much as Rs 19,109.7 crore in October through seven offers -- 5 IPOs and 2 rights issues, market regulator Sebi said.

"During November 2010, Rs 10,556.9 crore was mobilised in the primary market through eight issues as compared Rs 19,109.7 crore mobilised through seven issues in October 2010," said the latest issue of Capital Market Review by the Securities and Exchange Board of India (Sebi).

The mop-up had been quite high in October on account of the good response to the IPO of Coal India Ltd, which garnered over Rs 15,000 crore.

The number of qualified institutional placements also went down in November, with only seven hitting the market during the month, as against 11 in October.

The amount raised from QIPs also fell by over 68 per cent to Rs 1,349 crore in November, from Rs 4,292 crore in October, Sebi added.

While four QIPs in November were placed on both the Bombay Stock Exchange and the National Stock Exchange, two were exclusively on the BSE and one exclusively in NSE.

The number of preferential allotments also saw a decline in November with only 17 such allotments raising Rs 491 crore. In October, a total of 26 preferential allotments had hit the primary market, raising a total of Rs 5,720 crore.

In November, the stock markets were a bit fluid with the equity benchmark Sensex going down by four per cent during the month.

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First Published: Dec 28 2010 | 4:37 PM IST

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