Fund raising via rights issue dips 49% in FY'14: Report

Subscribe to GoodReturns
Fund raising by Indian companies through rights issues dips 49 per cent to Rs 4,573 crore in 2013-14, a report by Prime Database has said. It said, "As of now, 2014-15 looks slightly more promising."

In a rights issue, shares are issued by companies to their existing investors as per their holding at a pre-determined price and ratio.

According to the report, firms mopped up Rs 4,573 crore in 2013-14, lower than Rs 8,945 crore garnered in the preceding fiscal.

This was also the lowest level of funds raised through rights issue since 2011-12, when companies had raked in Rs 2,375 crore.

"Uncertain market conditions through the year, delays in the rights issues process and an overall lack of confidence in companies to raise and deploy fresh capital were the main reasons for the poor utlilisation of the rights route," Prime Database MD Pranav Haldea said.

Read more about:
Story first published: Tuesday, May 13, 2014, 23:00 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'