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Indian companies garnered over Rs 72,000 crore through issuance of shares on preferential basis in April this year, registering a whopping 39-fold rise over the same month a year ago. The firms had mopped up Rs 1,835 crore in April 2017. The April 2018 mobilisation was even greater than what the comapnies had garnered during the entire 2017-18, when they could manage only Rs 59,472 crore. The funds were mobilised for business expansion, refinancing of debt, working capital requirements and other general corporate purposes. As per data available with the Securities and Exchange Board of India, funds raised by the listed firms through preferential allotment stood at Rs 72,436 crore during the first month of the financial year 2018-19. Preferential allotment serves as an alternative mechanism of resource mobilisation wherein a listed issuer issues shares or convertible securities to a select group of persons. In terms of numbers, 59 issues were witnessed in April 2018 as compared to 41 during the corresponding month of the previous year.
