Indian companies raised Rs 1,835 crore in April this year by issuing shares on preferential basis, an over 53 per cent drop compared to the same month a year ago. 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 (Sebi) data, funds raised by listed firms through preferential allotment stood at Rs 1,835 crore during April of 2017-18 fiscal.
The funds accumulated in April this year are 53.30 per cent lower as compared to the same month a year ago, when companies had mopped up Rs 3,930 crore. While there were 41 preferential allotments made during April this year, the number stood at 47 in the same month of the previous fiscal. Firms had raised a total of Rs 44,251 crore during the entire 2016-17 fiscal through 409 preferential allotments.