Millennium Post

Fund mop-up via debt placement doubles to Rs46K-cr in Jan

Fund raising by Indian companies through private placement of corporate debt securities or bonds has more than doubled from the year-ago level to over Rs 46,000 crore in January.

In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital. According to the data available with Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 46,187 crore from debt on a private placement basis in January 2015, higher than Rs 20,782 crore mopped-up in the year-ago period. In December, firms had raked in nearly Rs 48,000 crore through this route. In terms of numbers, 188 issues were made last month as compared to 145 in January 2014. Most of the funds have been raised mainly for expansion of business plans and to support working capital requirements.

With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, has reached Rs 3.15 lakh crore in the current financial year (2014-15), against Rs 2.76 lakh crore mobilised during the entire last financial year (2013-14).

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