Fund raising via debt surges 60 per cent to Rs 70,395 crore in October

New Delhi: India Inc raised a staggering Rs 70,395 crore in October through private placement of corporate debt bonds, a surge of 60 per cent from the year-ago period.

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

According to the data available with Securities and Exchange Board of India (SEBI), companies garnered a total of Rs 70,395 crore from debt on a private placement basis last month, much higher than Rs 43,931 crore raised in October 2015.

In terms of numbers, 275 issues have been made last month 2016 as compared to 214 in the year-ago period.

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

With the latest mobilisation, the total fund raising through private placement of debt securities reached Rs 3.81 lakh crore in the current financial year (April-October).

In the previous fiscal (2015-16), the capital raked in through the route stood at Rs 4.58 lakh crore.