Fund raising via debt private placement hits all-time high in Sept

Fund mobilisation by listed firms through private placement of debt securities surged to an all time high of Rs 58,578.5 crore in September.

The companies had raised Rs 32,875.53 crore from debt on a private placement basis during August, 78.2 per cent less than the amount mopped up in September, as per the latest data with the Securities and Exchange Board of India (Sebi).

The amount is also over three times more than funds raised in the year-ago period, which stood at Rs 17,763 crore.

A total of Rs 58,578.53 crore was garnered through private placement of corporate bonds, which is the highest amount raised in a single month since January 2007. Official Sebi data is unavailable before January 2007.

With the latest figures released by the capital market regulator, the total money mobilised through private placement touched Rs 1.45 lakh crore for the first six months of the current financial year.

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

Fund raising through this route had been subdued at the beginning of FY15 on account of good performance of equities in the stock market.

However, it had gathered pace from August and the momentum continued in September as well.

During September, the number of issues rose to 312 from 174 issues in the preceding month.

Of the total funds raised last month, Rs 24,082.30 crore was mobilised through issues only on the National Stock Exchange (NSE), Rs 15,950.13 crore was raised by companies listed only on the Bombay Stock Exchange (BSE) and Rs 18,546.10 crore was from companies listed on both the exchanges.