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Fund raising via private placement of corporate bonds decline 38% in H1FY19
Oct-16-2018

The capital markets regulator, Securities and Exchange Board of India’s (SEBI) latest data showed that Indian listed companies fund raising through private placement of corporate bonds declined sharply by 37.96% in April-September period of current fiscal year (H1FY19).

According to the data, companies listed on the BSE and NSE garnered Rs 2.01 lakh crore from debt on a private placement basis in the first six months of FY19 as compared to Rs 3.24 lakh crore raised in April-September period of 2017-18. In terms of numbers, 1,173 issues were made in April-September this fiscal, as compared to 1,459 in the year-ago period.

The data showed that the funds have been raised mainly for business expansion, to support working capital requirements and retire their existing debt. In private placement of bonds, firms issue securities or bonds to institutional investors to raise capital. In the entire 2017-18 fiscal, the capital raked in through the route stood at Rs 6 lakh crore.

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