Raising of primary capital surged two-fold in August: SEBI

Indian companies have raised around Rs1,726 crore in fresh capital through primary market route in August, an over two-fold jump from the Rs747 crore raised in July.

The cumulative amount mobilised by corporates during the first five months of the current financial year (April-August) has surged to Rs3,967 crore through 18 issues against the Rs1,140 crore mop-up through 13 issues during the year-ago period, according to SEBI data.

Four companies - Reliance MediaWorks, Godrej Properties, Kokuyo Camlin and Asahi India Glass Ltd – accounted for Rs1,659 of the total Rs1,729 crore that companies raised from the primary market during August 2013.

A major part of the capital funds raised in August were through rights issues and only small companies hit the capital market to mop-up fresh capital.

Capital raising in August included five initial public offers (IPOs) of equity by GCM Commodity & Derivatives Ltd, VKJ Infradevelopers, Silverpoint Infratech, Kushal Tradelink and Tiger Logistics (India) Ltd, which were listed on small and medium exchange (SME) platform, SEBI noted.

"During August 2013, Rs1,726.1 crore were mobilised in the primary market by way of nine issues as compared to Rs747 crore mobilised through three issues in July 2013, showing an increase of around 131.1 per cent the previous month," SEBI noted.

Indian companies had mopped up around Rs32,455 crore from the primary market during the financial year 2012-13, the lowest since 2008-09 when they had garnered Rs16,220 crore, according to SEBI.