Indian firms raised a staggering Rs 42,000 crore through issuance of shares to promoters and shareholders on preferential basis during April-December period of the current fiscal.
In comparison, the companies had raised Rs 23,141 crore in the same period last fiscal.
The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirement and other general corporate purposes.
As per the latest data available with Securities and Exchange Board of India (Sebi), funds garnered by companies through preferential allotment stood at Rs 42,739 crore in the nine-month period of 2015-16.
However, in terms of numbers, the total issues fell to 264 in April-December period from 348 in the year-ago period.
Preferential allotment serves as an alternative mechanism of resource mobilisation wherein a listed firm issues shares or convertible securities to a select group of shareholders on private placement basis.
Of the total funds mobilised, the maximum was Rs 16,382 crore in October while the lowest was Rs 579 crore in December.
In the third quarter alone, the firms have raised Rs 21,864 crore, the maximum amount in any quarter till now since April 2015.
