Private Placement Of Debt

Sebi has decided to repeal certain circulars that provided relaxation in cases involving the allotment of securities through a private placement route. Under the Companies Act, 1956, the issuance of securities to 49 people was considered a private placement and the limit was increased to up to 200 under the Companies Act, 2013. In respect of cases under the Companies Act, 1956, involving the issuance of securities to more than 49 persons but up to 200 persons in a financial year, Sebi had said that companies may avoid penal action, subject to certain conditions. The conditions were that the entities had to "provide the investors with an option to surrender the securities and receive the refund amount at a price not less than the amount of subscription money paid along with 15 per cent interest p.a. thereon or such higher return as promised to the investors", as per the circular issued on Wednesday. Citing that considerable time has elapsed since the repeal of the Companies Act, 195

Corporates in India have set a new record for financing through private placements; the last record was set in 2020 at Rs 7.95 trillion

The issue just managed to scrape through as the bank received bids for Rs 1,516 crore from investors and it accepted bids for Rs 1,500 crore

Lower appetite from borrowers in post-pandemic economy a key reason, say experts

The stock was trading nearly flat at Rs 906 apiece on BSE

Listed firms mopped up Rs 7.72 trillion through issuance of bonds on private placement basis in 2020-21, an increase of 14% from the preceding fiscal

Fund mobilisation through corporate bonds via the private placement route hit an all-time high in 2020

The issue was on a private placement basis

Completes private placement of 4.63 per cent equity shares worth Rs 82 cr; number of shareholders rises to 67

The company said it has allotted 1,250 NCDs.

This breaks a three-year trend which had seen the value of private placements more than double since FY14