Fund-raising by issuance of shares to promoters and shareholders on preferential basis by companies hit a three-year low of Rs 28,260 crore in 2014-15.
According to the latest data available with market regulator Securities and Exchange Board of India (Sebi), funds garnered by companies through preferential allotments declined to Rs 28,260 crore in the fiscal ended March 31, 2015 from Rs 46,463 crore in 2013-14.
This was the lowest level of fund raising since 2012-13, when companies had mopped up a total of Rs 46,939 crore via preferential allotment route.
However, the number of preferential issues rose to 419 in 2014-15 from 411 in the preceding financial year.
Market participants said capital raised through the preferential allotments of shares has dropped but the number of companies opting for the route has increased. It suggests that many issues were of smaller size.
The sharp surge in fund raising coincides with BSE's benchmark Sensex gaining 25 per cent during the past financial year.
