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Indian companies mopped up Rs 3.43 lakh crore through private placement of corporate bonds in 2014, an increase of 33 per cent from the preceding year.
Private placement is a debt sale where less than 50 investors participate.
Market participants believe that probable interest rate cut by the Reserve Bank of India (RBI) will further act as a trigger for fund raising through debt instruments.
According to latest update with the market regulator SEBI, companies raised Rs 3.43 lakh crore via private placement of corporate bonds last year, higher than Rs 2.58 lakh crore garnered in 2013.
“Many firms opted for the debt route instead of equity as fund raising through equity segment was not available as very few companies came out with public offers,” CNI Research Head Kishor Ostwal said.
These funds have been raised mainly for expansion of business plans and to support working capital requirements.
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