Millennium Post

Cos raise `1 trillion via debt placement in April-May

Indian companies raised over Rs 1 lakh crore in the first two months of the current fiscal through private placement of corporate bonds to meet business needs. This is on top of Rs 4.58 lakh crore garnered in the entire preceding financial year (2015-16). In debt private placements, firms issue securities or bonds to institutional investors to raise capital. These funds have been raised mainly for expansion of business plans and to support working capital requirements. According to the latest data available with markets regulator Sebi, companies raked in Rs 41,079 crore via private placement of corporate bonds in April and another Rs 59,801 crore in May. This takes the total fund mobilisation to Rs 100,880 crore through 586 issues in the ongoing financial year (2016-17). In 2015-16, firms raked in Rs 4.6 lakh crore through private placement of corporate bonds, higher than Rs 4.04 lakh crore garnered in the preceding financial year ended March 2015. Companies opted for the debt route instead of raising capital through equity markets as the BSE’s benchmark Sensex plunged by over nine per cent in the past fiscal. 
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