Cos raise record Rs 4.32 trillion via debt placement in FY’15

Indian companies raised a record Rs 4.32 lakh crore last fiscal through <g data-gr-id="22">private</g> placement of corporate bonds to meet business needs, a surge of 60 <g data-gr-id="14">per cent</g> from the preceding year. Firms raked in Rs 4,32,692 crore in 2014-15 through <g data-gr-id="21">private</g> placement of corporate bonds, higher than Rs 2.71 lakh crore garnered in the preceding financial year ended March 2014, as per a report by Prime Database. This was the highest ever <g data-gr-id="15">fund raising</g> by companies in a financial year. The previous high was in <g data-gr-id="19">2012-13,</g> when firms had garnered Rs 3.52 lakh crore. 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. Financial institutions/banks contributed to most of the <g data-gr-id="16">fund raising</g>, Prime Database Executive Director Sanjeev Khandelwal said. Despite a rally of 25 <g data-gr-id="17">per cent</g> in BSE's benchmark Sensex in last fiscal, companies flocked to the debt route instead of raising capital through public offers.