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Indian companies mopped-up Rs 3.44 lakh crore through corporate bonds on private placement basis to meet business needs in the first nine months of the ongoing fiscal, a surge of 15% from the year-ago period.
The increase in capital raising can be attributed to higher fund mobilisation by the private sector, as per a report by Prime Database.
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These funds have been raised mainly for expansion of business plans and to support working capital requirements.
Firms raked in Rs 3,43,898 crore during April-December via private placement of corporate bonds, higher than Rs 2,99,725 crore garnered in the corresponding period of the previous year, the report noted.
These funds were mobilised by 470 institutions and corporates.
In the entire past fiscal, companies had garnered a record Rs 4.32 lakh crore through this route.
In debt private placements, firms issue securities or bonds to institutional investors to raise capital.
Financial Services sector continued to dominate the market, collectively raising Rs 2.23 lakh crore or 65% of the total amount. This was followed by power segment with a fund mop-up of Rs 32,086 crore.
The highest mobilisation through private placement of debt during the period was by Power Finance Corp (Rs 21,112 crore), followed by LIC Housing Finance(Rs 17,343 crore), HDFC (Rs 15,376 crore) and Rural Electrification Corp (Rs 12,931 crore).
