Record Rs. 43 b raised through CSE in 2007

A record Rs. 43 billion of equity capital was raised through the stock market in 2007 through Rights issues by 17 companies listed on the CSE.

This reflects the high level of confidence placed by shareholders in the listed companies that have raised capital, the CSE said.

This is the highest amount of capital raised through the stock market in any given year either through the primary or the secondary market.

The capital raised by the 21 companies was utilised mainly to fund growth and expansion and to retire debt, surpassing the previous highest when 29 listed companies raised Rs. 7.8 Billion in 1994.

Previously the highest amount of capital raised collectively through the primary and secondary market was Rs.13.3 Billion in 2005.

One of the key benefits of being listed is the ability to raise additional capital from the Secondary Market and the CSE is happy to note that 21 such companies have opted to make use of the capital market to finance their activities in 2007.