DOI: 10.36347/sjebm.2014.v01i06.009

Pages: 271-275

Abstract: The study focused on to analyse the role of primary market in capital generation by Indian companies during the study period of ten years from 2002-03 to 2011-12. The study used secondary data for analysis which were collected from SEBI. It used simple percentage, standard deviation and compound annual growth rate (CAGR) as statistical tools. the study found that Indian companies made more issues during the years when the market grown than other years. It means they utilized the opportunity of market growth. The results also showed that during the year in which major growth was attained by Indian stock market, they made more issues at premium, which means managers of companies timed the market and reaped the benefit of market growth through raising capital at premium. The results of industry-wise analysis showed that banking industry was the major industry that raised more amount of capital through primary market during the study period. Banking companies raised capital through primary market all the years of the study period except 2008-09, which was crisis year. Industries like printing and plastic raised very less amount of capital during the study period.