India Inc raises Rs 4,700cr in first 2 months of FY'10: Report

NEW DELHI: India Inc has mobilised a whopping Rs 4,700 crore in the first two months of this financial year thanks to the revival in market sentiments and going forward this capital raising activity is set to gain further momentum, a report says.

Fund raising through various instruments like rights issues, initial public offers (IPOs) and qualified institutional placements (QIPs) during the first two months of FY'10 rose by over five-fold to Rs 4,700 crore than the first two months of FY'09, brokerage firm SMC Capitals said in a report.

"This massive fund raising can be attributed to the revival in the QIP market, which was the major source for fund mobilisation. Going forward, the fund raising spree is likely to be robust as lot many IPOs are waiting in the pipeline," SMC Capital equity head Jagannadham Thunuguntla said.

Even though there are no initial public offers and rights issues during the first two months of the current financial year, there was a rush of Qualified Institutional Placements (QIPs) from several corporates.

Going forward the capital raising activity by corporate India in the current financial year is going to gain further momentum as the IPOs are expected to stage a comeback in the coming months especially that of public sector IPOs.

"We can say that the next five months would be better than the last five months," Thunuguntla added.