India Inc raised over Rs. 1 lakh crore through private placement of corporate debt securities or bonds in the first two months of the current fiscal year, with April witnessing the highest such raising in a month in over eight years.
The funds will be used mainly for business expansion and support working capital requirements.
The mop-up follows Rs. 4 lakh crore raised by Indian companies through debt in the last financial year (2014-15).
Data from the Securities and Exchange Board of India (Sebi) showed companies garnered Rs. 20,692 crore in May after raising Rs. 84,807 crore in April, taking the total amount to Rs.1,05,499 crore.
April marked the highest-ever fund-raising by Indian companies in a single month since January 2007. Data prior to this period is not available on Sebi’s website.
“After a spectacular past fiscal, we are upbeat about overall fund raising through the private placement of corporate bonds route for the current financial year (2015-16) as well,” an industry expert said.
In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.
In terms of numbers, 629 issues were floated during the first two months of FY16.