Cos raised Rs 41,812 cr via private placement of bonds in April

Simple disclosure norms and weakness in rupee made investors opt for this route, say analysts

Indian companies raised a staggering Rs 41,812 crore through private placement of debt securities in April – the highest level in nine months.

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

According to latest data available with the market regulator Securities and Exchange Board of India (Sebi), Indian firms garnered a total of Rs 41,812 crore from the debt on a private placement basis route. This was a robust rise from Rs 39,170 crore garnered in the preceding month.

At Rs 41,812-crore, the amount was the highest raised by Indian companies through private placement of bonds since July 2012, when they had raked in Rs 57,745 crore via 202 issues.

Market experts believe companies have opted for private placement of debt route for raising funds because of simple disclosure norms and weakness in rupee.

In April, the number of issuances stood at 206 as against 201 in March.

"In the corporate debt market, Rs 41,812 crore were raised through 206 issues by way of private placement listed at BSE and NSE during April 2013 compared to Rs 39,170 crore through 201 issues in March 2013," Sebi said.

Sebi, however, did not disclose the segment-wise fund raising details.

With this, overall funds raised by Indian companies has reached to Rs 1.4 lakh crore since the beginning of the year. In comparison, firms had mopped up a total of Rs

96,267 crore in the first-four months of 2012.

In the financial year ended March 31, 2013, listed firms raised Rs 3.4 lakh crore through private placement of debt securities, the highest in five years. In 2011-12, companies had garnered Rs 2.10 lakh crore.