New Delhi: Indian companies raised a record Rs 4.6 lakh crore in 2015-16 through private placement of corporate bonds to meet business needs -- a surge of 13 percent over the preceding fiscal.
According to latest data available with Securities and Exchange Board of India (Sebi), firms raked in Rs 4,58,073 crore last fiscal, which ended on March 31, through private placement of corporate bonds.
It was higher than Rs 4,04,136 crore garnered in 2014-15.
In terms of numbers, 2,975 issuances were made last fiscal, as compared to 2,611 in 2014-15.
These funds have been raised mainly for expansion of business plans and to support working capital requirements.
Corporate bonds are debt instruments created by companies for the purpose of raising capital.
These are called fixed-income securities because they pay a specified amount of interest on a regular basis.
In the privately-placed bond issue, allocation is made to institutional investors.
Experts said sluggish equity market have forced many companies to opt for private placement of debt route to garner fresh capital.
The BSE benchmark, Sensex, plunged by 9.35 percent during the period under review.