India Inc mops up $611.27 mn in October

Corporate India raised $611.27 million through the external commercial borrowings (ECB) and foreign currency convertible bonds (FCCB) route in October 2005.

The funds raised by 33 companies through the automatic route, which does not need prior approval of the Reserve Bank of India (RBI), touched $600.25 million. Two corporates "" Jain Irrigation Systems and Cabot India "" cornered $11.02 million after obtaining the RBI nod.

Reliance Industries was the largest issuer of ECBs in the market. It raised over $186 million to refinance old loans. The maturity of Reliance ECB ranged from one-year-and-five-months to five years. Industrial Development Bank of India mopped up $78.78 million through

ECBs for two-years-and-six-months to retire old debt, according to the RBI data released today.

Larsen & Tubro and TVS Motor Company will use $78.78 million and $25 million respectively, raised through ECBs, to import capital goods and for the rupee expenditure related to capital goods. The Aditya Birla group company, Hindalco, raised $23.14 million to refinance old loans.

Four companies garnered funds through FCCBs "" a quasi-equity instrument "" for modernisation programmes and purchase of capital goods.

Amtek Auto, the auto component unit, raised $100 million via FCCBs with a tenure of five-years-and-one-month to fund modernisation plans. Sintex will use $50 million for purchasing capital goods.

The RBI has sought clarification from Sundram Bleistahl for the end use of $1 million raised through ECBs.