India Inc turns to equity, bonds as cheaper bank loans remain elusive

Corporates raise record funds through QIPs, block deals and bonds as improved balance sheets and limited loan rate transmission push them towards capital markets

Indian corporates are increasingly shifting away from bank funding towards alternative sources, such as equity and bond markets, as their deleveraged balance sheets have improved their ability to raise equity at better valuations.

 

Moreover, the 100 basis points (bps) rate cut by the Reserve Bank of India (RBI) has enabled them to access long-term funds from the debt capital market at cheaper rates.

 

Fund-raising by corporates has been abuzz this financial year through block deals and qualified institutional placements (QIPs). In FY25, India Inc had raised over ₹42,000 crore through QIPs.

 

Additionally, they have raised over ₹1.07 trillion through block