In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital. According to the data available with Sebi, companies garnered a total of R50,970 crore from debt on a private placement basis during the first quarter of the current fiscal (2014-15) as against R1,10,785 crore in the preceding months.
Moreover, in May fund raising via debt placement hit the lowest in nine-months to over R9,000 crore. Besides, the number of issues fell to 542 in April-June quarter, from 664 in the preceding quarter. Fund raising through private placement has been lately subdued owing to a good performance of equities in the stock market and stability of rupee with dollar.
In FY14, firms raked in a total of R2.76 lakh crore through private placement of debt route compared with R3.61 lakh crore garnered in the previous financial year.