Indian cos mop up Rs 20,000 cr via debt placement in Feb

Indian companies raised a little over Rs 20,000 crore through private placement of debt securities in February, a marginal drop of three per cent from the preceding month. The funds were garnered primarily for business expansion and to meet capital requirements.

According to the latest data from market regulator Securities and Exchange Board of India (Sebi), firms had garnered Rs 20,782 crore through private placement of bonds in January as against Rs 20,171 crore in February. However, the number of issues rose to 162 last month from 145 in January.

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Firms issue debt securities, or bonds, to institutional investors to raise capital under the private placement route. Market analysts said capital raised via the debt placement route declined in February as compared to the previous month but it is likely to pick up in the ongoing quarter on expected stability in interest rates.