India Inc's fundraising from overseas up 12% to $9.7 billion in H1 2023

Indian companies raising funds from foreign sources rose 12 per cent to $9.7 billion in the first half of calendar year 2023, compared with $8.6 billion raised in the same period of 2021-22.

Several companies, led by Reliance Industries, raised funds from overseas, notwithstanding the changed geopolitical circumstances and rising interest rates.

“Several companies are raising funds within India as their cash flow has improved, and there is enough mutual fund money being invested in rupee-denominated bonds,” said Prabal Banerjee, a consultant on overseas fundraising.

Reliance Jio is currently in talks to raise $1.6 billion to fund equipment from Nokia. Bankers said the outlook on overseas fundraising depends on interest rates.

“If interest rates cool down overseas, then several companies will raise funds to fund their capital expenditure and refinance their older loans,” said a banker.