More borrowers take the private placement route amid liquidity crunch

Three-month rolling average shows April fund-raising through the route is higher than last year

There has been a steady rise in the use of the private-placement route for fund-rasing in the recent months, after a dip in the middle of 2018.

The rise comes in the backdrop of tightening liquidity conditions following the Infrastructure Leasing & Financial Services (IL&FS) crisis. Fund-raising through the private placement route hit Rs 71,183.5 crore in April, up from Rs 62,599.3 crore in the year ago period. The number is based on a three-month rolling average, calculated based on data collated by primary market tracker Prime Database. 

Private placement is when a company raises debt from a select group