Indian companies raised nearly R51,000 crore through private placement of corporate debt securities or bonds in April-June 2014, down 54% compared with 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 Sebi, companies garnered a total of R50,970 crore from debt on a private placement basis during the first quarter of the current fiscal (2014-15) as against R1,10,785 crore in the preceding months.
Moreover, in May fund raising via debt placement hit the lowest in nine-months to over R9,000 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 with dollar.
In FY14, firms raked in a total of R2.76 lakh crore through private placement of debt route compared with R3.61 lakh crore garnered in the previous financial year.