Fund raising via private placement bonds hit 9 month low in May

Tags: Companies
Indian companies mopped up over Rs 9,000 crore through private placement of corporate debt securities or bonds in May, the lowest in nine months.

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 in May a total of Rs 9,070 crore from debt on a private placement basis through 83 issues.

This was the lowest amount raised by companies through private placement of debt securities in a month since August 2013, when they had garnered Rs 2,089 crore.

"In the corporate debt market, Rs 23,574 crore was mopped up through 300 issues by way of private placement listed at BSE and NSE during April 2014, compared to Rs 9,070 crore raised through 83 issues in May," Sebi said.

Fund raising through private placement has been lately subdued owing to a good performance of the equities in the stock market.

With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, reached Rs 32,644 crore in the current financial year (2014-15), against Rs 2.76 lakh crore mobilised during the last financial year (2013-14).

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