Figure Watch

Mobilisation of capital by listed companies through rights issues has hit dismal levels. According to Prithvi Haldea of PRIME, the country8217;s premier data base on the primary capital market, during fiscal 1998-99, only 26 companies entered the market with rights issues, mobilising a meagre Rs 568 crore.

This marks a 67 per cent drop over the previous fiscal when 49 rights issues had entered the market, raising Rs 1,703 crore. More significantly, the mobilisation in 1998-99 works out to a meagre 4 per cent of the amount which was raised in the boom year of 1992-93. The decline, in fact, has now been consistent over the years. The continuing fall in the rights mobilisation, according to Haldea, can be ascribed mainly to the lack of investors8217; confidence and to the subdued secondary market. The investors8217; apathy is a major factor for the current state of the market.