Indian companies garnered a little over Rs 27,000 crore through issuance of shares to promoters and shareholders on preferential basis during April-November period of the current fiscal, a sharp plunge of 36 per cent from the year-ago period.
The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirements and other general corporate purposes.
Preferential allotment serves as an alternative mechanism of resource mobilisation, wherein a listed firm issues shares or convertible securities to a select group of shareholders on a private placement basis.
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As per the latest data available with the Securities and Exchange Board of India (Sebi), funds raised by listed firms through preferential allotment stood at Rs 27,001 crore in the first eight months (April-November) period of 2016-17.
In comparison, companies had mopped-up Rs 42,160 crore in April-November period of last fiscal (2015-16).
In terms of numbers, 279 preferential allotments were made in the first eight month of the current fiscal compared to 240 during the same period previous financial year.
In 2015-16, total funds raked in by listed companies via preferential allotment was at Rs 50,513 crore.