Mumbai: India Inc mopped up a meagre Rs 63 crore through public and rights issue of shares in June 2012, making it the lowest figure in five months.

According to data available with the market regulator Sebi, Indian companies raised Rs 63 crore through two Initial Public Offerings (IPOs).

"The amount raised through IPOs during June 2012 include one IPO worth Rs 8 crore listed on SME platform," Sebi said.

However, the regulator did not divulge the names of the companies which had raised funds but as per information available with the stock exchanges VKS Projects Ltd had entered the capital market with an issue size of Rs 55 crore in June.

This was the lowest amount of capital raised since February, when companies had raked in a total of Rs 792 crore.

In May, companies had raised a total of Rs 247 crore that includes Rs 188 crore through IPOs and remaining Rs 58 crore through rights issue route.

"...Amount raised in the primary market through public and rights issues during the month decreased by 74.4 percent from Rs 246 crore in May 2012 to Rs 63 crore in June 2012," said Sebi.

Market experts believe the appetite among investors for IPO is low in a weak secondary market. Therefore, many companies are avoiding this route for fund-raising despite having Sebi's approval. Besides, some firms have shelved their IPO plans due to poor response from investors.

In May, packaging materials maker Plastene India and auto parts manufacturer Samvardhana Motherson Finance had shelved their IPOs.

Including June figures, the total cumulative mobilization for the current financial year (2012-13) so far stands at Rs 509 crore on the back of seven issues as against Rs 8,000 crore raised via 18 issues during the previous fiscal year.


Latest News 
from Business News Desk