Fund raising via capital markets drops 31% to Rs 75,230 cr in Sep

New Delhi: Companies garnered over Rs 75,000 crore from capital markets in September, a decline of 31 per cent from the preceding month, with private placement of debt instruments continuing to be the most preferred route for financing business. The funds were mopped up mainly for business expansion plans, loan repayments and working capital requirements.

According to data available with the markets regulator Sebi, companies raised a total of Rs 75,230 crore in September as compared to Rs 1.1 lakh crore in August by way of issuing equity and debt securities.

Out of the Rs 75,230 crore garnered in September, Rs 64,389 crore was mopped up from private placement of debt securities and Rs 9,022 crore through private placement of equity, which include qualified institutional placement (QIP) and preferential allotment routes.

Individually, a total of Rs 7,684 crore was raised through issuance of shares on preferential allotment basis and Rs 1,338 crore through QIP.

In comparison, corporates had mobilised Rs 58,419 crore and Rs 45,471 crore through private placement of debt securities and equities, respectively, in August.

When it comes to raising funds through public issuance, in September Rs 1,302 crore was raised through two main-board initial public offering, Rs 7 crore from SME's initial share-sale and Rs 363 crore through rights issue.

There was one public issue of corporate bonds amounting to Rs 150 crore in the month of September.

During August, there was no public issue of corporate bonds, the data showed.