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

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

Going ahead, the debt market is anticipated 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.

Firms raked in Rs 4,56,962 crore during the April-January duration of 2018-19 via a private placement of corporate bonds, compared with Rs 4,87,764 crore garnered in the corresponding period last fiscal, according to the latest data available with the Securities and Exchange Board of India (Sebi).

In the full financial year 2017-18, companies had increased 6 lakh crore through the route.

These funds have been raised mainly for expansion of business plans and to help working capital requirements.

In debt private placements, firms matter securities or bonds to institutional investors to raise capital.

In terms of numbers, funds were raised through 1,955 issuances in the first 10 months of the present fiscal as compared with 2,200 in the year-ago period.

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

“Going forward, we see the debt market getting a further impetus after Sebi coming out with guidelines that required large listed companies to raise at least 25 percent of their long-term borrowings through corporate bonds, which is to come into force from April 1, 2019,” Ranganathan further said.