Cos garner Rs 5.52 lakh crore via pvt bond placement in Jan-Sep

New Delhi: Indian firms raised Rs 5.52 lakh crore in January-September 2017 through private placement of corporate bonds to meet business needs, a surge of 19 per cent from year-ago period, according to a Prime Database report.

These funds have been raised mainly for expansion of business plans, repayment of debt and to support working capital requirements.

In debt private placements, firms issue securities or bonds to institutional investors to raise capital.

According to the report, a total of 569 institutions and corporates garnered Rs 5.52 lakh crore in the first nine months of the year. In comparison, firms had raised Rs 4.65 lakh crore in January-September 2016.

The sharp surge in fund-raising could be attributed to contributions made by private sector companies, Prime Database President Sanjeev Khandelwal said.

Private sector raked in Rs 3.42 lakh crore and government owned organisations mopped up Rs 2.09 lakh crore.

In terms of sector, financial services continued to dominate the market, collectively raising Rs 3.78 lakh crore or 68 per cent of the total amount. This was followed by power segment with a fund mop-up of Rs 45,621 crore.

The highest mobilisation through private placement of debt during the period was by HDFC (Rs 42,891 crore) followed by NHAI (Rs 33,550 crore), PFC (Rs 32,266 crore), NABARD (Rs 24,530 crore) and LIC Housing (Rs 19,445 crore).

Most of the money was raised in the 3-5 year maturity bucket (Rs 1.89 lakh crore) followed by over 10 years bucket (Rs 1.23 lakh crore).