India Inc's fundraising at 5-month low in June

India Inc mopped up a meagre Rs 63 crore through public and rights issue of shares in June 2012, making it the lowest figure in five months.

According to Securities and Exchange Board of India (Sebi) data, Indian companies raised Rs 63 crore through two Initial Public Offerings (IPOs).

“The amount raised through IPOs during June 2012 include one IPO worth Rs 8 crore listed on SME platform,” Sebi said.

However, the regulator did not divulge names of the companies which had raised funds but as per information available with the stock exchanges VKS Projects Ltd had entered the capital market with an issue size of Rs 55 crore in June.

This was the lowest amount of capital raised since February, when companies raked in a total of Rs 792 crore.

In May, companies had raised Rs 247 crore that includes Rs 188 crore through IPOs and Rs 58 crore through rights issues.

“...Amount raised in the primary market through public and rights issues during the month decreased by 74.4 per cent from Rs 246 crore in May 2012 to Rs 63 crore in June 2012,” Sebi said.

Market experts feel that investor appetite for IPOs is low in a weak secondary market. Many companies are avoiding this route for fundraising despite having Sebi approval. Besides, some firms have shelved their IPO plans due to poor response from investors.

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