Indian companies garnered nearly Rs 1 trillion through issuance of shares on preferential basis in the April-June quarter of the current fiscal year, registering an 11-fold rise over the year-ago period.
The companies had mopped up Rs90.37 billion in the corresponding period previous financial year.
The funds mobilised during the June quarter were also higher than what companies had raised during the entire 2017-2018 fiscal year, when they could manage only Rs 595 billion.
Data available with the Securities and Exchange Board of India showed that funds raised by listed firms through preferential allotment stood at Rs998.11 billion during the first quarter of 2018-19.
While the firms had raised Rs724.50 billion during April 2018, they had mobilised Rs28.12 billion and Rs245.49 billion in May and June, respectively.
The funds were garnered for business expansion, refinancing of debt, working capital requirements and other general corporate purposes.
Preferential allotment serves as an alternative mechanism of resource mobilisation wherein a listed issuer issues shares or convertible securities to select persons or entities.
Also, there were 125 issues during the first quarter as compared to 129 in the corresponding period previous financial year.