Amid the dearth of traditional modes of fund raising from the equity as well as debt markets, India Inc resorted to rights issue offerings and raised a whopping Rs 29,699 crore in this year, says a report.

"So far this year, funds raised through rights issue amounted to Rs 29,699 crore, a surge of a massive 167 per cent from Rs 11,133 crore raised in the corresponding period a year ago," a report by Nexgen Capitals, the merchant banking arm of domestic brokerage firm SMC Global, said.

"There was a surge in rights issue offerings this year as  all kind of fund raising activity failed during this year due to the current market situation.

"Besides, the clause that in this route if there is any short fall, then promoters have the option to chip in and fill the gap also helped in the rise of number of rights issues in 2008," Nexgen Cap Equity Head Jagannadham Thunuguntla said.

In volume terms, however, there was slightly less activity as 26 issues hit the capital market this year against 29 issues in calendar year 2007.

The amount of funds in pipeline to be raised through rights issue aggregates to around Rs 32.65 billion wherein seven issues amounting to Rs 16.85 billion has already received the SEBI nod and 17 issues aggregating to around Rs 15.80 billion are awaiting the regulator's green signal, the report added.

Rights issue is an offering of common stock to existing shareholders who hold subscription rights or pre-emptive rights that entitle them to buy newly issued shares at a discount from the price at which they will be offered to the public later.