New Delhi: Indian companies raised over Rs 46,000 crore through private placement of corporate bonds in August, making it the highest fund raising in the last four months.
Most of the funds have been raised mainly for business expansion and to support working capital requirements.
According to the Securities and Exchange Board of India (Sebi) data, companies garnered a total of Rs 46,564 crore from debt on a private placement basis in August, higher than Rs 27,920 crore raised in the preceding month.
This was the highest level of fund raising by companies since April, when they had raked in Rs 84,807 crore.
In comparison, firms had mobilised Rs 32,875 crore in August last year.
In terms of numbers, 272 issues were made last month as compared to 325 in July.
Market experts attributed the continuous increase in borrowing from the corporate bond market to the fall in yields ever since the Reserve Bank of India (RBI) cut the repo rate.
With the latest fund mobilisation, overall capital raised through private placement of debt securities has reached Rs 2.16 lakh crore in the current financial year (2015-16) so far as against Rs 4.04 lakh crore mobilised during the entire last financial year (2014-15).
In debt private placements, firms issue debt securities or bonds to institutional investors to raise capital.
PTI
First Published: Thursday, September 3, 2015, 15:15