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Fund raising abroad by Indian companies fell 13 per cent in 2012-13. India Inc raised about $32 billion through external commercial borrowing (ECB) and the foreign currency convertible debentures (FCCB) route. According to data released today by the Reserve Bank of India (RBI), in March, companies raised about $5 billion from abroad. This is the highest fundraising to happen in a month for the financial year.
In the absence of business confidence, companies did not go for much foreign fundraising in FY13, as ECB has specific terms about the usage of the borrowed amount, according to Gyan Harlalka, managing director and head-markets (India), Royal Bank of Scotland. He expects foreign fundraising to increase, with the government initiating steps to help bring back business confidence.
Companies raised $3.43 billion in March through the automatic route and $1.64 billion under the approval route, which requires a case-by-case approval from RBI.
ONGC Videsh, which raised $900 million on three-months tenure for a foreign acquisition, emerged as the biggest fund raiser in March.
Other major companies that 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.
