New Delhi: Indian companies raised Rs 4.14 lakh crore through private placement of corporate bonds during the first 11 months of the fiscal to meet business needs amid weakness in the equity markets.
This was higher than a record 4.04 lakh crore raised in the entire past fiscal (2014-15).
These funds have been raised mainly for expansion of business plans and to support working capital requirements. Firms raked in Rs 4,14,624 crore during April-February via private placement of corporate bonds, higher than Rs 3,5,728 crore garnered in the corresponding period of the previous year, according to data available with the Sebi.
In debt private placements, firms issue securities or bonds to institutional investors to raise capital.
By way of numbers, funds were raised through 2709 issuance in the first 11 months of the current fiscal as compared to 2,333 in the year-a go period.
According to market analysts, firms flocked towards debt route instead of raising capital through equity due to weakness in the stock markets.
The benchmark BSE Sensex fell by nearly 18 per cent in the first eleven months of the current fiscal.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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