India Inc's foreign borrowings plunge over 68% to $996 mn in April

Overseas borrowings by Indian companies fell 68.5 per cent to $996.04 million in April, according to data from the Reserve Bank of India (RBI).

India Inc had raised as much as $3.16 billion from overseas market in the corresponding month of the previous financial year.

Whereas no fund was raised by way of rupee-denominated bonds (RDBs) or masala bonds in April 2020, the borrowing during the year-ago month included $304,462 through RDBs.

Of the total borrowing from the foreign market in April this year, $696.04 million was raised through the automatic route of the external commercial borrowings (ECB).

REC, the financial service provider in energy sector, was the sole entity to raise $300 million through the approval route of ECB for the purpose of on-lending.

Among the major borrowers in the automatic route included Sical Logistics $179.10 million for overseas acquisition. The company is engaged in the business of transport through land and pipeline.

Mahindra & Mahindra Financial Services raised $139.30 million for on-lending, and Adani International Container Terminal $98.51 million.

Among others were Veritas Software Technologies India's $49 million for starting new project and HPCL-Mittal Energy Ltd, which is engaged in manufacturing of coke and petroleum products, $40 million for rupee expenditure.

Automotive Electronics Power Pvt Ltd raised $32.79 million for working capital requirements and new project needs, while Hyundai Transys India Pvt Ltd borrowed $23.88 million for import of capital goods.