India Inc taps Rs 4 lakh cr in 2013

India Inc taps Rs 4 lakh cr in 2013

Quantum of funds raised by Indian companies from the markets was Rs 4 lakh crore in 2013, with debt market emerging as the most-preferred route to garner capital for their business needs.

While there was a lull in the primary stock market — where the companies raise funds through the sale of shares via instruments like IPOs and FPOs — it was private placement of corporate bonds and non-convertible debentures that was used the most to meet funding requirements of businesses in 2013.

Together, the companies have raised fresh capital worth nearly Rs 4 lakh crore from equity and debt markets this year, shows an analysis of funds raised through various routes.
These funds have been raised primarily for business expansion plans and to meet capital requirements.

A large chunk of this amount or more than Rs 3.10 lakh crore has been mopped up from debt market.

Funds raised from equity market stands at about Rs 87,000 crore, which mostly include those raised by preferential share allotments to promoters and other investors, as also promoter share sale through Offer For Sale (OFS) route.

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