The quantum of funds raised by India Inc through initial public offers and rights issues fell to zero in October this year as not even a single issue hit the market in the month.
"During October 2011, not a single issue hit the primary market compared to Rs 3,029 crore raised in September 2011," according to the latest 'Capital Market Review' by market regulator the Securities and Exchange Board of India (Sebi).
Commenting on the lull activity in the primary market, Geojit BNP Paribas Research Head Alex Matthews said private equities and FIIs are not brining fresh funds due to the slowdown in US and Eurozone.
He said various companies went for IPOs and public issues in August and September, but they performed badly and the IPOs were at below offer price. So, in October companies were cautious, he added.
Corporates had raised a total of Rs 3,029.1 crore through a total of 12 issues, including nine initial public offer (IPOs), in September.
"The cumulative amount mobilised for the financial year 2011-12 so far stands at Rs 16,342 crore through 46 issues as against Rs 38,388.7 crore through 52 issues during the corresponding period in 2010-11," Sebi said.
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It said that only one Qualified Institutional Placement (QIPs) took place in October which raised Rs 40 crore. In the previous month, there were no QIPs.
Preferential allotments witnessed a decline in October, 2011, with 18 such allotments raising a total of Rs 417 crore. In comparison, 25 preferential allotments were executed in the primary market in September, which raised a total of Rs 499 crore.
After a period of volatility, the stock market witnessed a lot of volatility in October, even though the benchmark Sensex gaining 8.9% during the month.