During September 2010, a sum of Rs 48,024 million was mobilised in the primary market through 18 issues compared to Rs 10,497 million through 6 issues mobilised during August 2010. Segregating this figure into IPO, FPO and rights issues, it was Rs 40,730 million, Rs 515 million and Rs 6780 million, respectively. The cumulative amount mobilised during April to September 2010 stood at Rs 187.412 billion through 44 issues compared to Rs 177.595 million through 29 issues during the corresponding period of FY 2009–10. The rights issues pertained to State Bank of Mysore and Rohit Ferro Tech. Ltd. The former issued 10,800,000 shares of Rs 10 each at Rs 540. The latter issued 15,793,178 shares of Rs 10 each at Rs 60. In September 2010, seven listed companies both at BSE and NSE raised Rs 22,270 million through QIP channel compared to Rs 43,420 million raised by three companies during August 2010. Again, there were 16 preferential allotments for Rs 35,430 million listed at BSE and NSE during September 2010 compared to 31 allotments for Rs 34,170 million in August 2010. Last but not least, in the corporate debt market, Rs 157,390 million was raised through 120 issues by way of private placement listed at BSE and NSE during September 2010 compared to Rs 133,800 million through 76 issues in August 2010. Based on: SEBI Bulletin, October 2010.
1. In what ways the funds are raised in the primary market for securities?
2. Why are the rights issues so small compared to issues through IPO?
3. Present an overall picture of funds-raising in the Indian primary market for corporate securities.