NEW DELHI, May 12 (PTI): Quantum of funds raised by Indian companies from the retail issuance of debt securities or bonds hit a 10-year high of over Rs 420 billion in 2013-14, says a report.
In comparison, the financial year 2012-13 witnessed a mobilisation of Rs 169.82 billion via public debt issues.
These funds have been raised primarily for business expansion plans and to meet capital requirements.
According to a report by Prime Database, Indian companies garnered Rs 423.83 billion in 2013-14 from 20 institutions.
This was the highest amount of funds raised by companies through retail issuance of debt securities since 2003-04, when they had raked in Rs 43.24 billion.
The sharp rise in fund-raising activity was "mainly on account of tax-free bond garnering (86 per cent of total amount) by financial institutions and PSUs."
As per the report, the biggest mobilisation was made by financial Institutions and banks at Rs 297 billion in 2013-14, up from Rs 145.70 billion mopped-up in the preceding fiscal year.
Mobilisation of funds by the private sector firms jumped to Rs 58.69 billion in past financial year from Rs 22.17 billion in 2012-13, while funds raised by public sector companies climbed to Rs 68.14 billion from just Rs 1.95 billion.
In terms of companies, the highest mobilisation via public debt issues was by India Infrastructure Finance Company Ltd (Rs 68.78 billion), followed by Indian Railway Finance Corp (Rs 58.28 billion), Housing and Urban Development Corporation Ltd (Rs 47.96 billion) and Rural Electrification Corporation (Rs 45 billion).
Funds raised via debt securities hit 10-yr high in FY14: Report
FE Team | Published: May 13, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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