India Inc raises Rs 4.57-lakh crore via debt private placement in Apr-Jan FY19

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New Delhi | Published: February 16, 2019 2:32:49 AM

Indian companies raised Rs 4.57 lakh crore through private placement of corporate bonds during the first 10 months of the current fiscal to meet business needs.

india inc, indian companiesIn the full fiscal 2017-18, companies had raised Rs 6 lakh crore through the route.

Indian companies raised Rs 4.57 lakh crore through private placement of corporate bonds during the first 10 months of the current fiscal to meet business needs.
Going ahead, the debt market is expected to see further impetus on Sebi’s move asking large firms to manage a fourth of their long-term funds from the bond market, Mukund Ranganathan, executive director at Motilal Oswal Investment Banking, said.

Companies raked in `4,56,962 crore during the April-January period of 2018-19 via private placement of corporate bonds, compared with `4,87,764 crore garnered in the corresponding period last fiscal, according to the latest data available with the Sebi.

In the full fiscal 2017-18, companies had raised Rs 6 lakh crore through the route. These funds have been raised mainly for expansion of business plans and to support working capital requirements.
In debt private placements, companies issue securities or bonds to institutional investors to raise capital. In terms of numbers, funds were raised through 1,955 issuance in the first 10 months of the current fiscal as compared with 2,200 in the year-ago period.

“The issuances by financial institutions to fund their lending requirement in addition to other corporates have been the mainstay of the debt market, and this year was no exception,” Ranganathan added.

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