Rights mop-ups leap eight times in FY?08

Mobilisation of resources through rights issues registered a massive rise in the recently-concluded fiscal 2007-08. According to Prime Database, money raised increased by a massive 778% at Rs 32,518 crore as compared to Rs 3,703 crore raised in the previous fiscal.

Written by Markets Bureau

April 3, 2008 01:01 IST

However, the number of companies which took this route to raise money was down in the fiscal to 30 as compared to 38 companies which raised money in the previous fiscal year. The largest issue in the year, as per Prime Database, was that of State Bank of India (Rs 16,736 crore). The other Rs 1,000-crore plus issues were Tata Steel (Rs 9135 crore), Federal Bank (Rs 2141 crore) and Indian Hotels (Rs1,447 crore).

Prithvi Haldea of Prime Database said, ?The response to all issues of the year was good. Rights offers were made at a discount to the ruling market price and hence were able to draw shareholders? response especially when the secondary market is doing well.?

This article was first uploaded on April three, twenty eight, at one minutes past one in the night.