Indian companies have raised Rs 41,812 crore through private placement of debt securities in April — the highest level in nine months.
Firms issue debt securities or bonds to institutional investors to raise capital via private placement route.
According to latest data available with the Securities and Exchange Board of India (SEBI), the companies garnered Rs 41,812 crore via private placement of debt securities against Rs 39,170 crore raised in the preceding month.
This was the highest amount 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 that the companies have opted for private placement route for raising funds because of simple disclosure norms and weakness in rupee.
“In the corporate debt market, Rs 41,812 crore was raised through 206 issues by way of private placement listed on the BSE and NSE during April 2013 compared with Rs 39,170 crore through 201 issues in March 2013,” SEBI said.
The market regulator, however, did not disclose the segment-wise fund-raising details.
With this, the overall funds raised by Indian companies have touched Rs 1.4 lakh crore since the beginning of the year against Rs 96,267 crore raised in the first four months of 2012.
During 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.