Fund-raising by India Inc through private placement of corporate debt or bonds has surged nearly three times to over Rs 1.41 lakh crore in April-June of the current fiscal from the year-ago level.
The funds will be used mainly for business expansion and to support working capital requirements.
According to Sebi data, companies mopped up a total of Rs. 1,41,624 crore from debt on a private placement basis in the first quarter, higher than Rs. 50,970 crore a year ago.
Notably, April saw the highest-ever fund-raising by Indian companies in a single month since January 2007. Data prior to this period are not available on Sebi website.
The latest mop-up follows Rs. 4 lakh crore raised by Indian companies through debt last financial year, 2014-15.
“After a spectacular past fiscal, we are upbeat about overall fund-raising through private placement of corporate bonds for the current financial year as well,” an industry expert said.
In terms of numbers, 912 issues were out in the April-June quarter of 2015-16 compared with 542 in the year-ago period.
In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.