India Inc raised a staggering over Rs 17,000 crore through institutional placements for their business expansion plans, refinancing of debt and to meet working capital needs.

Moreover, many companies have lined up their plans to raise fund through Qualified Institutional Placement (QIP) route.

This comes on top of Rs 31,684 crore that was raised by various listed firms by issuance of shares to institutional investors in the entire 2014.

According to an analysis of data available with Sebi, firms have mopped up Rs 17,124 crore through 25 issuance during the January-July period in 2015.

Most of the funds raised through QIPs were for expansion plans, refinancing of debt and to support working capital requirements.

QIP is a capital-raising tool, whereby a listed firm can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.

According to the data, there was a large gap between the capital raised through QIPs and funds garnered via other routes like IPO.

A total of Rs 11,500 crore was raked up through rights issue, while over Rs 5,000 crore was mopped up via initial public offerings (IPOs) so far in 2015.

Share price of Elder Pharmaceuticals declined as much as 6 per cent on Monday after the company on Saturday sent a letter to the BSE saying it was facing a severe financial crunch. (Photo: PTI)

Share price of Elder Pharmaceuticals declined as much as 6 per cent on Monday after the company on Saturday sent a letter to the BSE saying it was facing a severe financial crunch and that its audited results for the year ended June 30 were delayed.

At 2.17 pm, the scrip was trading 4.30 per cent lower at Rs 84.60. It opened at Rs 88 and touched a low of Rs 83.25, in trade so far. Sensex was down 109.67 points at 25,092.23.

In a BSE filing, Elder Pharma said, “The company’s current financial year has ended on June 30, 2015. Company is presently facing severe financial crunch. In view thereof many of our senior employees including junior and subordinate staff have resigned from the company. This has led to severe shortage of employees to handle the work of accounts and audit for the same and therefore audit has not completed within time. Further, the company is in process to complete the audit as early as possible and will submit the audited financial results in due course of time.”

According to Clause 41 of Listing Agreement, the company has to submit quarterly and yearly audited financial results within 60 days from the end of quarter.

On a year-to-date basis, the share price of Elder Pharma declined 29.39 per cent at Rs 88.40 on September 4. The BSE Sensex declined 8.38 per cent during the same period.

Dr Reddy’s Laboratories, Inc, the US-based arm of Hyderabad-based firm is recalling the drug for being “sub-potent”. (PTI)

Share price of Dr Reddy’s Laboratories fell over a per cent in the afternoon trade on Monday on reports that the drug major is recalling over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets, used to treat high blood pressure and cholesterol related diseases, in the US market.

At 12.40 pm, Dr Reddy’s Laboratories shares were trading 1.15 per cent lower at Rs 4,009.50 apiece on BSE. It opened at Rs 4,071 and had touched a high and low of Rs 4,095.60 and Rs 3,991.10, respectively, in trade so far. Sensex was flat at 25,179.

According to the US Food and Drug Administration (USFDA), Dr Reddy’s Laboratories, Inc, the US-based arm of Hyderabad-based firm is recalling the drug for being “sub-potent”.

The tablets being recalled by the company have been manufactured at its Bachupally facility, near Hyderabad and distributed in the US by its subsidiary, Dr Reddy’s Laboratories, Inc. The recall was initiated by the company on August 13 this year.

On a year-to-date basis, the share price of Dr Reddy’s Laboratories jumped 26.30 per cent to Rs 4,056.15 on September 4. The BSE Sensex slid 8.38 per cent during the same period.

For the quarter ended June 2015, the company posted a consolidated net profit of Rs 625.65 crore, up 13.67 per cent, against Rs 550.39 crore in the corresponding quarter a year ago.

(With inputs from PTI)

Shares of IndusInd Bank today surged over 2 per cent in morning trade on the bourses after the Reserve Bank on Friday removed the lender from its caution list. (PTI)

Shares of IndusInd Bank on Monday jumped over 2 per cent in morning trade on the bourses after the Reserve Bank of India (RBI) on Friday removed the lender from its caution list.

RBI in a release on September 4 said it has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender.

“The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” RBI said adding that the shares of IndusInd Bank can now be purchased through the primary market and stock exchanges.

Following which, shares of the company opened on a bullish note, in an otherwise volatile market, and surged 2.37 per cent to an early high of Rs 860.

Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 850, then jumped 2.23 per cent to an early high of Rs 859.60.

The surge in the counter assumes significance as the broader market was trading in the negative territory. At 1130 hours the 30-share benchmark index was trading at 25,152.84, down 49.06 points.
Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.

The scheme’s performance will be benchmarked against customised index–CRISIL Composite Bond Fund Index (80%) and CNX Nifty (20%) and its fund managers are Abhishek Bisen and Deepak Gupta. (Photo: Reuters)

Kotak Mahindra Mutual Fund launched the Kotak Capital Protection Oriented Scheme-Series 1, a close ended income scheme. The new fund offer (NFO) opens for subscription on September 7 and will close on September 21, 2015. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is Rs 5,000.

The scheme’s performance will be benchmarked against customised index–CRISIL Composite Bond Fund Index (80%) and CNX Nifty (20%) and its fund managers are Abhishek Bisen and Deepak Gupta.

The investment objective of the scheme is to seek capital protection by investing a portion of the portfolio in highest rated debt securities and money market instruments and also to provide capital appreciation by investing the balance in equity and equity related securities.