Companies garner Rs 73,215 cr from capital markets in October; debt via private placement most-preferred route

By: |
December 7, 2020 5:08 PM

Individually, a total of Rs 2,200 crore were raised through the QIP route and Rs 1,944 crore were raised through issuance of shares on a preferential allotment basis.

MSME Budget 2021 Expectations, Budget 2021 Expectations for MSMEAccording to the delayed payment monitoring system MSME Samadhaan, out of 65,435 applications filed by MSEs, only 5,691 applications involving Rs 858.60 crore were disposed of by MSEFCs so far.

Companies raised Rs 73,215 crore from the capital markets in October, with private placement of debt instruments continuing to be the most-preferred route for funding.

The funds have been mopped up mainly for business expansion plans, loan repayments and working capital requirements.

According to monthly bulletin published by markets regulator Sebi on Monday, firms raised a total of Rs 73,215 crore in October compared to Rs 75,232 crore in September through issuance of equity and debt securities.

Prior to this, companies had mopped up Rs 1.1 lakh crore in August.

Out of the cumulative Rs 73,215 crore garnered in October, Rs 62,331 crore was mopped up from private placement of debt securities and Rs 4,144 crore through private placement of equity, which include qualified institutional placement (QIP) and preferential allotment routes.

Individually, a total of Rs 2,200 crore were raised through the QIP route and Rs 1,944 crore were raised through issuance of shares on a preferential allotment basis.

In comparison, corporates had mobilised Rs 64,389 crore and Rs 9,022 crore through private placement of debt securities and equities, respectively, in September.

When it comes to raising funds through public issuance in October, Rs 5,825 crore was raised through six main-board initial public offering (IPO), Rs 62 crore from eight SME’s initial share-sale and Rs 554 crore through rights issue.

The six companies that launched their IPOs on main board stock exchanges are: CAMS, UTI Asset Management Company, Chemcon Speciality Chemicals, Angel Broking, Likhitha Infrastructure and Mazagon Dock Shipbuilders.

There was one public issue of corporate bonds amounting to Rs 300 crore in October, data showed.

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