After slowing down in April and May, India Inc has raised a higher amount through external commercial borrowing and foreign currency convertible bonds route in June. The latest figures released by RBI reveal the domestic companies have raised around $1.62 billion through ECB and FCCB route in June 2008. The companies had raised $1.16 billion in April and $1.28 billion in May 2008 through the same routes. However, they had mobilised $4.5 billion in March 2008.
ADAG flagship Reliance Communication Limited borrowed maximum corpus worth $750 million for a tenor of 10 years towards import of capital goods. Essar Shipping borrowed $110 million for 6 years towards leasing & hire purchase activity. Gateway Terminals India Private Limited borrowed $36 million for the longest tenor of 10 years and 2 months and Global Stamping & Welding Automotive Private Limited borrowed $2 million for the shortest tenor of 3 years.
Out of 34 companies that raised the money for capital expansion or overseas acquisitions, four companies opted to raise the funds through approval route over automatic route. The companies that raised money purely for overseas acquisition include, Shree Ashtavinayak Cinevision Limited ($38 million) and Gujarat based detergent manufacturer Nirma Limited ($20 million).
