More than 50% unused IPO funds lies with MFs

Reliance Power, NHPC, Adani Power, JSW Energy, Indiabulls Power, OnMobile Global, Den Networks and IRB Infrastructure are among few companies which have invested unutilised balance public issue proceedings in mutual funds and bank deposits.

The promoters of these companies have parked the unutilised funds in bank deposits and mutual funds.

According to data collected from the company's announcements, top ten companies collectively mobilised Rs 27,700 crore through IPO's in last two years. Out of whcih, they have 57% or Rs 15,709 crore unutilised funds in mutual funds and bank deposits.

The said sample companies accounted for 70% of the total funds mobilised (Rs 40,000 crore) by the Indian companies via public issues since January 2008. Interestingly, mutual funds (MFs) had subscribed equity shares worth of Rs 1,500 crore of these ten companies in IPO's.

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