57 per cent rise in funds via debt route

New Delhi: India Inc raised a whopping Rs 38,645 crore in November through private placement of corporate debt bonds, a surge of 57 per cent from the year-ago level, for business expansion and propping up working capital requirements.

With the latest mobilisation, the total fund raising through private placement of debt securities reached Rs 4.2 lakh crore in the current financial year (April-November). In the previous fiscal (2015-16), the capital raked in through the route stood at Rs 4.58 lakh crore.

According to the data available with Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 38,645 crore from debt on a private placement basis last month, much higher than the Rs 24,618 crore raised in November 2015. In terms of numbers, 221 issues were made in November 2016 as compared to 133 in the year-ago period.

“Volatile and weak sentiments in equity markets encouraged companies to raise capital through private and public bond issues instead of equity issues. Also, cost of raising debt was lower in 2016 as interest rates fell. “There were various regulatory initiatives for deepening Indian Bond markets such as banks being allowed to issue,” Bajaj Capital senior VP  Alok Agarwala said.