India Inc raised a record Rs 85,000 crore (Rs 850 billion) through private placement of corporate debt securities or bonds in April to fund business expansion plans and to support working capital requirements.
In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.
According to the data available with Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 84,807 crore (Rs 848.07 billion) from debt on a private placement basis in April 2015, much higher than Rs 23,575 crore (Rs 235.57 billion) raised in the year-ago period.
This was the highest ever fund raising by Indian companies in a single month since January 2007.
Data prior to this period is not available with Sebi's website. Comparatively, in March, companies had garnered Rs 46,856 crore through this route. In terms of numbers, 378 issues were made last month as compared to 300 in April last year.
Most of the funds have been raised mainly for expansion of business plans and to support working capital requirements.
In 2014-15, capital raised through private placement of debt securities stood at Rs 4.04 lakh crore or Rs 4.04 trillion against Rs 2.76 lakh crore (Rs 2.76 trillion mobilised during the preceding financial year.
