Economic Survey 2020 India: Indian companies garnered nearly Rs 74,000 crore through public issuance of equity and debt during April-December this fiscal, a 66 per cent jump from the preceding financial year, with rights issue emerging as the most preferred route for financing business needs. Companies had raised Rs 44,355 crore in the April-December period of 2018-19, according to the Economic Survey tabled in Parliament on Friday.
Of the cumulative Rs 73,896 crore raised in the first nine months of 2019-20, a large chunk of Rs 51,255 crore was garnered through rights issue, Rs 10,895 crore through equity issuance and Rs 11,746 crore via debt markets. Fund raising through rights issue was Rs 1,843 crore in April-December 2018-19.
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As many as 47 companies raised Rs 10,895 crore through public equity issuance against to 103 firms raising Rs 13,947 crore in April-December 2018, indicating a decrease of 21.9 per cent over the period. Funds garnered through the issuance of debt securities to public dropped significantly to Rs 11,746 crore in the period under review from Rs 28,565 crore in the year-ago period.
Apart from these, funds were raised through private placement of bonds and equity, which include qualified institutional placements (QIPs) and preferential allotment. “During 2019-20 (up to December 31, 2019), Indian corporates preferred private placement route to gear up the capital in the corresponding period in previous year,” the Economic Survey for 2019-20 said.
A total of Rs 6.29 lakh crore was raised through 1,520 issues in April-December 2019 through private placements, as compared to Rs 5.3 lakh crore through 2,006 issues in the corresponding period of previous year. Of Rs 6.29 lakh crore, a total of Rs 4.5 lakh crore was raised through bonds and Rs 1.79 lakh crore from equity issues.