New Delhi: Fund raising by Indian firms from institutional investors fell sharply to Rs 609 crore during April-August of 2016-17 from Rs 8,320 crore mobilised in the same period a year ago.
The funds have been raised for expansion, refinancing of debt and to meet the working capital requirements.
According to the Securities and Exchange Board of India (Sebi) data, listed firms garnered Rs 609 crore via qualified institutional placement (QIP) route during April-August period, much lower than Rs 8,320 crore mopped-up in the same period last fiscal.
In terms of numbers, five issues were witnessed during the period under review as compared to 16 in the first five months of the last fiscal.
In the entire 2015-16, about Rs 14,588 crore was mopped up through 24 issues, as per the Sebi data. QIP is an alternative mode of resource raising available for listed companies to raise funds from the domestic market.
In August, firms had raked in Rs 230 crore through the QIP route, while Rs 56 crore was mobilised in July. A total of Rs 61 crore was raised in June and Rs 262 crore in May. No issues were witnessed in April.
In a QIP, a listed issuer issues equity shares or non-convertible debt instruments along with warrants and convertible securities other than warrants to qualified institutional buyers only.
First Published On : Nov 1, 2016 15:54 IST