New Delhi: Quantum of funds raised by Indian companies from the retail issuance of debt securities or bonds surged by more than three-fold to nearly Rs 34,000 crore in 2015-16.
In comparison, companies had garnered Rs 9,713 crore via public debt issues in the preceding financial year. Prior to that, fund raising through bond issues had hit a 10-year high of over Rs 42,000 crore.
These funds have been raised primarily for business expansion plans and meeting capital requirements.
Market experts said sluggish equity markets dampened investor sentiment and helped companies opt for the debt route for raising funds.
Meanwhile, the BSE benchmark Sensex fell 9.36 per cent in the last financial year.
In the public bonds market, firms raked in Rs 33,812 crore in 2015-16, much higher than the Rs 9,713 crore raised in the preceding financial year, according to an analysis of data.
A total of 20 issues took this route last fiscal compared with 25 in 2014-15.