New Delhi: Indicating a slump of 36 per cent from the year-ago period, Indian firms raised over Rs 11,000 crore via issuance of shares to promoters and shareholders on preferential basis during April-June quarter.

Companies had garnered Rs 17,398 crore in the first quarter of the last fiscal. The funds have been mobilised for business expansion plans, refinancing of debt, working capital requirements and other general corporate purposes.

Companies raised Rs 3,829 crore in April, Rs 5,218 crore in May and Rs 2,009 crore in June.

Preferential allotment serves as an alternative mechanism of resource mobilisation, wherein a listed firm issues shares or convertible securities to a select group of shareholders on a private placement basis.

As per the latest data available with the Securities and Exchange Board of India (Sebi), funds garnered by listed companies through preferential allotment stood at Rs 11,057 crore in April-June quarter of 2016-17.

Through such allotments, companies raised Rs 3,829 crore in April, Rs 5,218 crore in May and Rs 2,009 crore in June. In terms of numbers, 143 preferential allotments were made in the first quarter of the 2016-17 compared to 105 during the same period previous fiscal. In 2015-16, total funds raked in by listed companies via preferential allotment was at Rs 50,513 crore.

Source: PTI