Indian companies garnered Rs 44,000 crore through issuance of shares on preferential basis in 2016-17, a fall of 12 per cent over the previous fiscal. The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.
As per the Securities and Exchange Board of India data, funds raised by listed firms through preferential allotment stood at Rs 44,251 crore during 2016-17. The funds accumulated during 2016-17 were 12.39 per cent lower as compared to 2015-16 when companies had mopped up Rs 50,513 crore.
While there were 409 preferential allotments made during 2016-17, the number stood at 355 during the previous fiscal.
January was the busiest month last fiscal, with the firms raising Rs 8,756 crore through this route, followed by October, September and May when they mopped-up Rs 5,839 crore, Rs 5,718 crore and Rs 5,218 crore respectively.