Millennium Post

July pvt debt placements hit lowest level in 5 yrs

Fund-raising by Indian companies through private placement of debt securities or bonds plunged to Rs 12,182 crore in July – the lowest level in nearly five years.

According to the data available with the market regulator Securities and Exchange Board of India (Sebi), Indian firms garnered total Rs 12,182 crore from debt on a private placement basis route through 141 issues. This was the lowest amount raised by companies through private placement of debt securities since October 2008 when they had mopped up Rs 8,769 crore.

Fund raising slumped in July because of weak market sentiment and slowdown in economy, experts said. At the same time, the rate of interest was also on the higher side, which is impacting companies capital mop-up plans, they added.

‘In the corporate debt market, Rs 12,182 crore was raised through 141 issues by way of private placement listed on BSE and NSE during July 2013 compared to Rs 35,214 crore through 222 issues in June 2013,’ Sebi said.

With the latest fund mobilisation, overall capital raised through private placement of debt securities reached to Rs 1.23 lakh crore in the current fiscal (April-July), lower than Rs 3.61 lakh crore mobilised in the last financial year (2012-13).
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