India Inc prefers debt route over equity to fund biz needs
07/07/2015 17:11

Debt is emerging as the most preferred route to garner capital for their business needs as Indian companies raised a staggering over Rs 1.33 lakh crore from markets in the first two months of the current fiscal (2015-16), said the media report.

An analysis of funds raised through various channels showed that companies have together mopped up fresh capital worth Rs 1,33,241 crore through equity and debt.

A large chunk of this -- more than Rs 1.06 lakh crore -- came from debt market while Rs 27,032 crore has been mobilised through the equity route. These funds have been raised mainly for expansion of business plans and to support working capital requirements.

In the equity segment, money was raised through the preferential route (Rs 15,891 crore), followed by rights issue (Rs 7,498 crore), initial public offers (Rs 1,885 crore) and qualified institutional placements (Rs 1,758 crore).

In the debt market, the companies raised over Rs 1.05 lakh crore through debt placement while public issuance of debt securities accounted for just Rs 329 crore.

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