Funds earmarked via Rights Issues so far top Rs. 33 b; Higher than combined value raised during past 3 years
Post-war rebound and optimism leading to buoyant equities market has lured more companies to go to shareholders to raise cash, with this year tipped to be a record.
So far this year a staggering Rs. 33.2 billion has been or is being raised via 19 Rights Issues. This figure has surpassed the amount of funds raised via Rights Issues in the past three years combined. Funds raised via Rights Issues are considered zero cost capital.
With six more months left for the year, analysts expect 2011 to raise a record high figure. The previous highest was Rs. 44.6 billion via 21 issues raised in 2007.
The combined value raised between 2008 and 2010 is Rs. 32.1 billion, whilst by the end of the first half of this year, the figure is Rs. 33.25 billion.
http://www.ft.lk/2011/05/19/free-funds-feast/