India Inc raises $89 million for overseas acquisition

The mood back home may not be buoyant, but that does not seem to deter India Inc from looking at business opportunities overseas, given that three companies raised $89 million through Euro Convertible Bonds (ECBs) in February 2013 to fund overseas acquisition.

According to data released by the Reserve Bank of India (RBI) on Tuesday, Gujarat government owned  Gujarat State Fertilizers & Chemicals raised $45 million ($20 million for a tenor of 4 years and $25 million for 6.1 years);  Jain Irrigation Systems raised $24 million for tenors ranging from 5 to 9.4 years and jewellery firm Shrenuj and Company raised $20 million for a tenor of 6.5 years, all for overseas acquisition.

The overall money raised during the month was $2.34 billion, including $1.08 billion under the automatic route. Some of the other major fund raisers included Gitanjali Gems ($200 million), IDFC ($100 million) and  NTPC ($250 million).

Companies that raised using the approval route included Reliance Industries ($800 million),  Power Finance Corporation ($250 million) and Amtek Auto ($125 million).