Fund raising via debt placement falls 34% to Rs 38,000 cr in Oct

Fund mobilisation by Indian firms through private placement of corporate debt securities or bonds plunged by 34 per cent to just over Rs 38,000 crore in October.

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

According to the data available with the Securities and Exchange Board of India (Sebi), companies garnered a total of Rs 38,399 crore last month from debt on a private placement basis, lower than Rs 58,578 crore raked up in September.

Besides, the number of issuances fell to 279 in October from 312 in the preceding month.

Fund raising through private placement has been lately subdued owing to a robust performance of the stock market. Moreover, companies are opting for Intial Public Offer (IPO), Qualified Institutional Placement (QIP) and rights issue route to mop up funds.

With the latest fund mobilisation, overall capital raised through private placement of debt securities, so far, reached Rs 1.84 crore in the current financial year as against Rs 2.76 lakh crore mobilised during the entire 2013-14.