Firms raised Rs 5,600 cr in Dec from IPOs

The quantum of funds raised by India Inc through initial public offers and rights issues went up by over five-fold to Rs 5,600 crore in December over the previous month.

Companies had raised Rs 1,601 crore in November with two issues, according to the ‘Capital Market Review’ by Securities & Exchange Board of India (Sebi).

Sebi said the amount mobilised during April-December period stood at Rs 23,003 crore through 51 issues as against Rs 50,480 crore raised through 66 issues during the corresponding period in 2010-11.

Experts said volatile nature of the market and global economic slowdown have prompted companies to stay away from coming out with new issues. Sebi also said there was only a single Qualified Institutional Placement (QIPs) in December which raised Rs 68 crore. In the previous month, there were no QIPs.