FY22 private placements growth may have hit record low, shows data

Lower appetite from borrowers in post-pandemic economy a key reason, say experts

The financial year 2021-22 (FY22) may end with the sharpest year-on-year drop in private placements seen on record.

The total amount raised is Rs 5.5 trillion as of March 25th according to tracker Prime Database. This would mark a 27 per cent decline over FY21’s Rs 7.5 trillion. This would be the sharpest year-on-year decline since comparable records are available dating back to FY01.  

Companies are going slow on expansions after the Covid-19 pandemic and there has been a general trend where they have been looking to now reduce debt, according to those tracking the situation. Private placements are a