Twitter
Advertisement

Companies mop-up Rs 2 lakh crore via debt placement in Jan-Jun FY16

Indian companies raised a staggering Rs 2.04 lakh crore through private placement of corporate bonds in the first six months of the ongoing fiscal, to meet business needs, a surge of 21% from the year-ago period.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Indian companies raised a staggering Rs 2.04 lakh crore through private placement of corporate bonds in the first six months of the ongoing fiscal, to meet business needs, a surge of 21% from the year-ago period.

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

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

According to Prime Database, firms garnered a total of Rs 2.04 lakh crore during April-September period of the current fiscal, higher than Rs 1.69 lakh crore mobilised in the first half of 2014-15.

Financial institutions/banks contributed to most of the fund raising, Prime Database Managing Director Pranav Haldea said.

Financial Services sector continued to dominate the market, collectively raising Rs 1.4 lakh crore or 68 per cent of the total amount. This was followed by power sector with a fund mop-up of Rs 17,962 crore.

The highest fund mobilisation through private placement of debt during the period was by Power Finance Corp (Rs 19,312 crore), LIC Housing (Rs 10,768 crore), HDFC (Rs 9,701 crore), Rural Electrification Corp (Rs 8,121 crore) and IDFC (Rs 7,042 crore).

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement