Indian companies raised nearly Rs 51,000 crore through private placement of corporate debt securities or bonds in April-June 2014, down by 54 per cent compared to that in the precceding quarter.
In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.
According to the data available with the Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 50,970 crore from debt on a private placement basis during the first quarter of the current fiscal (2014-15) as against Rs 1,10,785 crore in the preceding months.
Moreover, in May fund raising via debt placement hit the lowest in nine-months to over Rs 9,000 crore.
Besides, the number of issues fell to 542 in April-June quarter, from 664 in the preceding quarter.
Fund raising through private placement has been lately subdued owing to a good performance of equities in the stock market and stability of rupee compared to dollar.
In the entire 2013-14, firms raked in a total of Rs 2.76 lakh crore through private placement of debt route compared to Rs 3.61 lakh crore garnered in the previous financial year.
