Fund raising via private placement bonds hits 11-month low in July

Fund raising by Indian companies through private placement of corporate debt securities or bonds in July came down to around Rs 2,900 crore, the lowest in eleven months.

In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.

According to the data available with the Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 2,866 crore last month from debt on a private placement basis through 28 issues.

This was the lowest amount raised by companies through private placement of debt securities in a month since August 2013, when they had garnered Rs 2,089 crore.

In June, firms had raked in Rs 18,326 crore via private placement of corporate bonds. These funds were raised through 159 issues.

Fund raising through private placement has been lately subdued owing to a robust performance of the stock market.

With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, reached Rs 53,837 crore in the current financial year (2014-15), against Rs 2.76 lakh crore mobilised during the entire previous financial year (2013-14).