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India Inc has raised a staggering Rs 11,500 crore through rights issue offerings since the beginning of 2015, making it the highest fund mobilisation through the route in seven years.
In a rights issue, shares are issued by firms to their existing investors as per their holding, at a pre-determined price and ratio. As many as six companies have collectively raised about Rs 11,500 crore this year so far as against Rs 5,224 crore in 2014, according to an analysis based on information available with stock exchanges. Fund mobilisation through rights issue in 2015 so far has already surpassed the amount garnered through this platform in each of the past six years. In 2008, 26 companies had raked in a total of Rs 29,699 crore.
Market experts believe that improvement in the stock markets scenario has helped in raising fund through rights issue mode.
The fund-raising through this route was hit among biggies like Tata Motors and GMR Infrastructure and Future Retail.
The largest rights issue was from Tata Motors (Rs 7,500 crore), followed by Future Retail (Rs 1,600 crore), GMR Infrastructure (Rs 1,402 crore), State Bank of Travancore (Rs 474 crore), Can Fin Homes (Rs 276 crore) and Zee Media Corporation (195 crore). At present, there are only two companies planning to raise Rs 135 crore and they have already received capital markets regulator Sebi's approval. Besides, three firms have approached Sebi to raise Rs 56 crore via rights issue.
