Overseas fundraising down 13% in 2012-13

Overseas fundraising to increase with government initiating steps to help bring back the business confidence

Overseas fundraising by Indian companies fell 13% in the 2012-13. India Inc raised about $32 billion through external commercial borrowings and foreign currency convertible debentures (FCCB) route.

According to data released today by Reserve Bank of India (RBI) in March companies raised about $5 billion overseas – highest fundraising in a month for the fiscal.  

According to Gyan Harlalka, managing director and head – markets, India at RBS during the last fiscal in the absence of business confidence companies didn’t go for overseas fundraising as it (ECB) has very specific terms about the usage of the borrowed amount.

He expects overseas fundraising to increase with government initiating the steps to help bring back the business confidence.

Companies in March raised $3.43 billion in automatic route while $1.64 billion under approval route which requires case by case approval from RBI.

ONGC Videsh emerged as the biggest fundraised in March. It raised $900 million for three months for an overseas acquisition.  Other major companies which raised money in March were Bharti Airtel, Rural Electrification Corporation and Essar oil.   

There was a single FCCB issuance in March by Aanjaneya Lifecare Limited for the period of five years. It raised $7.5 million for an overseas acquisition according to RBI data.