Not a single issue hit the primary markets in Nov: Sebi
Reflecting the damp market mood, India Inc kept off public offers and rights issues in November, as not even a single issue hit the market for the second consecutive month.
"November 2011, like last month (October), did not see any public or rights issue made in the primary market," according to Securities and Exchange Board of India's (Sebi) latest 'Capital Market Review'.
The lull in the primary market activity is because of private equities and FIIs not brining in fresh funds due to slowdown in the US as well as euro-zone nations facing debt crisis, experts said.
Various companies went in for IPOs and public issues in August and September, but their scrips were trading below the offer price. In October, companies turned cautious.
"The cumulative amount mobilised for the financial year 2011-12 so far stands at Rs 16,437.6 crore through 47 issues, as against Rs 48,923.3 crore through 60 issues during the corresponding period in 2010-11," Sebi said.
It said that no company went for Qualified Institutional Placement (QIPs) in November. In October, only one QIP had taken place which raised Rs 40 crore.
Preferential allotments, however, continued to be made.
There were 21 preferential allotments in November which raised Rs 169 crore, Sebi said.
In comparison, 18 such allotments were made in October which raised a total of Rs 417 crore.
The stock market witnessed a lot of volatility in November and the BSE benchmark Sensex fell 8 per cent during the month. It has fallen nearly 24 per cent this year, eroding around Rs 20 lakh crore from investor wealth.
