Indian companies raise more debt
Indian companies raised Rs 2.04 lakh crore in the first half of 2015-16 through private placement of debt or corporate bonds, which is 21% more than that raised last year.
According to data company Prime Database, Indian companies had raised Rs 1.69 lakh crore last year. The rise in private debt placement was driven largely by a 55% jump in funds mobilised by private sector companies. The private sector raised Rs 1.09 lakh crore in the April-September period, up from Rs 70,407 crore last year, said Pranav Haldea, managing director, Prime Database. Public sector undertakings raised Rs 19,120 crore via private placement of debt, up 56% year-on-year in the same period, he added.
On an industry-wide basis, the financial services sector continued to dominate the market, collectively raising close to Rs 1.40 lakh crore, or 68% of the total amount. However, mobilisation of funds by all India banks declined 11% to 75,359 crore. Mobilisation of funds by state level undertakings to fell 67% to Rs 502 crore in the first half of this year, it said.
Some of the major fund raising deals in the first half included that of PFC (Power Finance Corp), LIC Housing Finance, HDFC (Housing Development Finance Corp) IDFC, Indiabulls Housing Finance and Power Grid Corp of India.
The volatility in India’s equity market this year, may have been a reason for companies to tap the corporate bond market instead, said analysts.