Fund raising through debt private placement falls 43.6% in Apr

Fund mobilisation by listed companies through private placement of debt securities declined sharply by 43.6% to Rs 23,574 crore in April over the same month last year.

The companies had raised a total of Rs 41,812 crore from debt on a private placement basis in April 2013-14, according to data available with market regulator Sebi.

The Rs 23,574.55 crore garnered in April is also 29% lower as compared to the funds mobilised in the preceding month (Rs 33,263 crore).

The number of issues, however, rose to 300 during the month, as compared with 206 issues in the same period a year ago. It was also more than the issues in March 2014.

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

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

Of the total funds raised in April this year, Rs 10,651.75 crore was mobilised through issues only on the BSE, Rs 9,122.80 crore was raised by companies listed only on the National Stock Exchange (NSE) and Rs 3,800 crore was from those listed on both the NSE and the BSE.

The amount raised in April 2014-15 is the second highest amount raised in the month since FY 2007-08. The highest amount (Rs 41,812 crore) was garnered in April 2013-14.