India Inc's debt placement doubles to Rs 42,000 crore in February

Fund raising by Indian companies through private placement of corporate debt securities or bonds has doubled to nearly Rs 42,000 crore in February from the year-ago level.

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

According to the Securities and Exchange Board of India, companies garnered Rs 41,847 crore from debt on a private placement basis in February, twice as much as Rs 20,171 crore mopped-up in the same month of last year.

In January this year, firms had raked in over Rs 46,000 crore through this route.

In terms of numbers, 216 issues were made last month as compared to 162 in February 2014.

Most of the funds have been raised mainly for expansion of business plans and to support working capital requirements.

With the latest fund mobilisation, overall capital raised through private placement of debt securities so far has reached Rs 3.57 lakh crore in the current financial year (2014-15), against Rs 2.76 lakh crore mobilised during the previous financial year (2013-14).