Fund raising via market doubles to $27B in Q1

Indian companies mopped up a whopping Rs 1.73 lakh crore from the markets in April-June quarter of the current financial year, more than double the amount garnered in the year-ago period.

These funds have been raised mainly for expansion of business plans and to support working capital requirements.

An analysis of funds raised through various routes showed that companies have together mopped up fresh capital worth Rs 1,72,818 crore from equity and debt markets during the first quarter of the current fiscal (2015-16), higher than Rs 72,085 crore raised in April-June period of 2014-15.

A large chunk of this amount or Rs 1,42,334 crore has been mopped up from debt market, while Rs 30,484 crore has been mobilised via equity route.

In the equity segment, most of the funds were raised through preferential route (Rs 17,398 crore), followed by rights issue (Rs 7,498 crore), qualified institutional placements (Rs 3,265 crore) and initial public offers (Rs 2,324 crore).

Within the debt market, the companies raked in Rs 1,41,624 crore through debt placement route, while just Rs 710 crore was mopped up through public issuance of debt securities.

Companies preferred debt route over equity for mobilising money in the April-June quarter, while in the equity segment, most of the fresh capital were raised through preferential allotment and rights issue.

In 2014-15, firms had raised a total of Rs 4.80 lakh crore from equity and debt markets as compared to Rs 3.92 lakh crore raked in the preceding fiscal.

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