Mumbai: Preferential allotments have emerged as the most favoured route for raising funds from primary markets by corporate, which during 2007-08 mobilised Rs 1.74 lakh crore, more than three times the amount garnered in the previous fiscal.

Unlike in the previous years, bulk of the funds amounting to Rs 61,600 crore was raised through preferential allotments during the year, said SEBI's bulletin.

Pointing out that "preferential allotment was the most favoured route for garnering funds from the market in March 2008," SEBI said there were 27 issues that raised Rs 6,638 crore.

During 2007-08, the market regulator said, there were 398 preferential allotment issues compared to 302 in the previous year, and the amount raised shot up from Rs 17,183 crore to Rs 61,589 crore.

Corporate raised Rs 54,511 crore through 92 public issues during the year compared to Rs 29,797 crore from 85 issues in the previous fiscal.

There were 85 IPOs during 2007-08 through which the companies raised around Rs 43,000 crore as compared to 77 in the previous year, resulting in mobilisation of Rs 28,500 crore.

According to the bulletin, 32 companies came out with rights issue during the year, raising a total of Rs 32,500 crore. Interestingly, during 2006-07, 39 companies came out with rights issue but raised less than Rs 4,000 crore.

The bulletin further said there were 4 public issues and rights issues in March 2008. And the amount raised through public issue was Rs 493 crore, whereas that from rights issue was Rs 2,064 crore.

Of all the public issues, which were in the form of IPOs, the Indian Hotels Company Ltd was the largest in terms of the issue size of Rs 844 crore.

Also, qualified institutional placements (QIP) contributed a major share, raising Rs 25,525 crore during 2007-08 from 32 QIPs compared to Rs 4,963 crore from the 25 issues in the previous fiscal.

Source : PTI