Fund raising via debt placement drops 14% to Rs 21K cr in Jan

Fund raising by Indian firms through private placement of debt securities fell to Rs 20,782 crore in January, down 14 per cent month-on-month.
The funds were raised primarily for business expansion and meeting capital requirements.
According to the latest data from capital market regulator Sebi, firms had garnered Rs 24,277 crore through private placement of bonds in December 2013 as against Rs 20,782 crore that was raked in January 2014.
In terms of issues, 145 companies raised funds in January, compared to 143 in the preceding month.
Firms issue debt securities or bonds to institutional investors to raise capital under the private placement route.

Market analysts said capital raised via the debt placement route declined in January as compared to the previous month but it is likely to pick up in the ongoing quarter on expected stability in interest rates.
In 2013, companies mopped up Rs 3 lakh crore through private placement of debt securities, 11 per cent lower compared to Rs 3.36 lakh crore garnered in year before.
Analysts said funds raised by firm in 2013 were lower than the preceding year, but they preferred this route over equity because of a lull in the stock market.