Debt issuances propel June fund mobilisation to record ₹3.15 trillion

Total fund mobilisation surged 122 per cent month on month to a record ₹3.15 trillion in June as debt issuances more than offset subdued IPO activity

Despite the market for initial public offerings (IPOs) remaining tepid in June, total fund mobilisation reached a record high on the back of debt issuances. 

 

The total mobilisation through equity, debt, and business trusts surged to ₹3.15 trillion — a 122 per cent jump month on month (M-o-M).

 

According to the NSE Market Pulse report, it is the highest monthly mobilisation on record. The report noted that the increase was primarily driven by debt issuances, which rose 142 per cent month on month to ₹2.59 trillion, supported by higher mobilisation through commercial papers and privately-placed non-convertible debentures (NCDs).

 

In the debt segment, the growth was particularly on the back of commercial papers (CP) issuances, which more than doubled to ₹1.9 trillion in June compared to ₹80,410 crore in May. During the same time period, private NCD issuances grew to ₹69,700 crore, reflecting strong funding demand from corporate.

 

“The bond issuances we are seeing is unusually broad-based, from infrastructure financiers to NBFCs (non-banking financial companies) and housing finance companies, which tells you this isn’t opportunistic timing by one or two large borrowers, but a fairly broad market view that yields may not stay this attractive for long,” said the treasury head at a private bank, adding: “Investors too are happy to lock in at these levels, so it’s turning into an instance where issuer and investor incentives are aligned in the same direction.”

 

The revival in the bond segment in June came after a comparatively muted activity in the first two months of the current financial year (FY27). Market participants attributed the sharp decline to elevated bond yields amid geopolitical tensions in West Asia, which kept issuers away from the debt market.

 

Institutions such as the National Bank for Financing Infrastructure and Development (NaBFID), National Bank for Agriculture and Rural Development (Nabard), Housing and Urban Development Corporation (Hudco), Small Industries Development Bank of India (Sidbi), Rural Electrification Corporation (REC), and LIC Housing Finance, along with issuers such as Bajaj Finance, Bajaj Housing Finance, Tata Capital, Tata Capital Housing Finance, HDB Financial Services, Sundaram Finance, Kotak Mahindra Prime and L&T Finance were among the biggest bond issuers during June.

 

The total fund mobilisation in the equity segment recovered to ₹53,000 crore on account of higher preferential allotments and qualified institutional placements (QIPs).

 

The primary market has seen strains earlier this year due to the geopolitical volatility like tariff concerns and the West Asia war. However, in June a little moderation returned with IPO mobilisation at ₹1,900 crore across the mainboard and small and medium enterprises (SMEs) on the NSE’s Emerge platform.

 

In the equity segment, preferential allotments contributed the most to the fund mobilisation, raising ₹22,500 crore — including issuances from mainboard companies and those from the SMEs listed on NSE Emerge. The secondary market offer for sale (OFS) issuances stood at ₹21,000 crore while QIPs mobilised ₹7,500 crore.

 

The first quarter of FY27 (Q1FY27) saw eight companies listing on the mainboard and raising ₹4,700 crore. In this, industrial and financial firms dominated. On NSE Emerge, the platform for SMEs, the healthcare sector led the IPO fundraising.

 

For BSE SME, the fundraises through IPOs stood at ₹940.6 crore for June, up from ₹50.5 crore recorded in May.

 

“During the Q1FY27, primary market activity remained measured, with IPO listings moderating compared with the corresponding period of FY26, although sectoral participation remained broad-based,” notes the report.

 

Industry players expect the second half of FY27 to be highly active for mainboard listings with big-ticket IPOs in the pipeline. This month, the largest asset manager in the country, SBI Funds Management, also made a strong debut on the exchanges.

 

However, fund mobilisation through real estate investment trusts (Reits) and infrastructure investment trusts (Invits) stood at ₹2,000 crore compared to ₹5,000 crore in May.