Indian companies have fund mobilized around Rs 39,000 crore via equity market route in 2014. Companies have collected funds through the qualified institutional placements (QIPs), which is considered as the preferred way to garner capital.
According to Prime Database managing director Pranav Haldea, Indian companies have raised around Rs 39,127 crore in 2014 through QIPs in equity market.
Despite the equity market was at high, the companies’ collection was short comparing the total collection made in 2013 at Rs 45,440 crore.
The slow in disinvestment process by the government could be the biggest reason for the fall in the collection of funds through the QIPs.
The Primary financial markets in India were in slugging despite a bullish equity market, that resulted a fall the capital mobilization of the companies.
Indian companies had raised highest amount of Rs 99,022 crore in 2010 ever highest in equity market. In 2014, only six main-broad IPOs came to the market, and collectively raised Rs 1,261 core.