STOCK MARKET BSE NSE

Money raised through public issues fell 50 per cent to Rs 54,915 crore in 2018-19: Economic Survey

During 2018-19, the survey said 'Indian corporates preferred private placement route to gear up the capital requirement'.

Published: 04th July 2019 06:16 PM  |   Last Updated: 04th July 2019 06:16 PM   |  A+A-

Rs 2000

For representational purposes (File Photo | EPS)

By PTI

NEW DELHI: The amount of money raised through public issues of equity and debt halved to Rs 54,915 crore in 2018-19 compared to the year-ago period, according to the Economic Survey.

In 2017-18, the amount stood at Rs 1,10,269 crore.

As many as 123 companies garnered Rs 16,087 crore through public issuance of equity last fiscal, a fall of 81 per cent compared to 2017-18.

In the comparable period, 202 companies mobilised Rs 83,696 crore through this route.

Additionally, the amount raised through 21 rights issues stood at Rs 2,149 crore in 2018-19.

In the year-ago period, the number of such issues were the same but the money mopped up was higher at Rs 21,400 crore.

ALSO READ: Economic Survey for rationalisation of tax policy for startups

"The year 2018-19 witnessed a significant decrease in resource mobilisation through public issue and rights issue of equity compared to the previous year," the survey tabled in the Parliament on Thursday said. However, the issuance of debt "rose quite significantly" as 25 debt public issues raised Rs 36,679 crore in 2018-19.

In comparison, Rs 5,173 crore that was mobilised through eight public issues of debt.

During 2018-19, the survey said, "Indian corporates preferred private placement route to gear up the capital requirement".

"Overall, total public issue declined by 50 per cent from Rs 1,10,269 crore in 2017-18 to Rs 54,915 crore in 2018-19," it said.

The primary market resource mobilisation through private placements stood at Rs 7,97,056 crore in last fiscal.

ALSO READ: Economic Survey suggests 'diplomatic'-type privileges for each district's top-10 taxpayers

The same was at Rs 7,25,858 crore in 2017-18.

The private placements include qualified institutional placement allotments, preferential allotments as well as private placement through bonds.

Last fiscal, the survey said net inflows into the mutual fund industry fell 59.63 per cent to Rs 1,09,701 crore compared to Rs 2,71,797 crore in the same period a year ago.

The cumulative net assets under management of all mutual funds increased by 11.4 per cent to Rs 23,79,584 crore at the end of March 2019.

In the year-ago period, the amount was Rs 21,36,036 crore, as per the survey.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp