Compared to this, the mobilisation through this route in the first half of last year was to the tune of Rs 1,376 crore, Prime Database, a leading primary market monitor said. In the first six months of 1998-99 only 14 rights issues entered the market compared to 28 issues in the comparable period of last year.

More so, many of these issues were made to increase promoters' stake, ensured by pricing and positioning the issues in a way to ward off investors, Prime said.

The rights issue market has been continously shrinking ever since the heady days in 1992-93 with the mobilisation in the first half of the current year equalling just five per cent of the total mobilisation in the first half of 1992-93.

The decline in rights issues has further compounded the situation in primary capital markets,which was already hit badly by the continued dismal performance of the public issue market.

According to the release by Prime, only three listed companies took the public issue route in the first half raising a meagre Rs 72 crore and the investor response for both rights and public issues were poor with many issues facing problems in going through. The fall in the rights mobilisation was because of continued apathy of investors, courtesy poor state of secondary capital market, the release adds.

This was heightened by the bad experience from the rights issues boom in the 1992-93 to 1993-94 period when most corporates took advantage of the free pricing guidelines.

Prime said given the state of the market and investor's apathy, the rest of the year is not likely to see any improvement over the current situation.

Only one rights issue, Shamken Multifab has opened in October. Even among those companies which have obtained clearances from the Securities and Exchange Board of India (Sebi), some like VideconAppliances and Shaw Wallace India Ltd (SWIL) have been deferring their issues for the past four to five months, Prime said.