India Inc's resource mobilisation through rights issue increased three-fold to Rs 3,616 crore during 2004-05, but lagged behind funds raised in the early 1990s, according to Prime Database.The database said as many as 14 companies have either applied or have received nod from the Securities and Exchange Board of India (Sebi) for raising about Rs 855 crore in 2005-06.The 26 companies that raised Rs 3,616 crore through rights issue in the just concluded fiscal was a meagre 29% of the Rs 12,630 crore raised by 488 companies in 1992-93, it said.During 2004-05, Sterlite Industries, which had acquired Balco, came out with a largest issue of Rs 1,972 crore, Prime Database said.The other issues of over Rs 100 crore size included ING Vysya Bank (Rs 307 crore), United Breweries (Rs 214 crore), Southern Iron and Steel (Rs 174 crore), Karnataka Bank (Rs 162 crore) and Bharat Forge (Rs 105 crore).There were at least 30 companies -- including Nicholas Piramal (Rs 350 crore), Catholic Syrian Bank (Rs 80 crore) and Federal Bank -- which have in the last six months made their plans to tap rights market, it said."The response to most issues of the year (2004-05) was good and rights offers are made at a discount to the ruling market price, and hence are able to draw in shareholders' response, specially when the secondary market is doing well," it said.
