Indian corporates and banks raised over Ra 8,000 crore through corporate bonds in the primary market on November 27.
According to the market sources, these companies and banks included Indian Railway Finance Corporation, ICICI Bank, Shriram Finance, Edel Finance Company, Moneyboxx Finance, among others.
These issuances include some fresh issuances and reissue of bonds by the corporates. Of the total fund raising, majority of the funds has been raised by IRFC worth Rs 2.981.65 crore and ICICI Bank worth Rs 3,945 crore.
The others issuers such as Shriram Finance raised Rs 125 crore, Edel Finance Company raised Rs 1 crore and Rs 5 crore through two bonds. The total lined up of fund raising was over Rs 11,500 crore by the companies.
Market experts said that the geavy fundraising by the corporates in consecutive days is due to divided views among the market participants about the rate action vy the Reserve Bank of India (RBI) in the upcoming monetary policy.
On November 21, a Moneycontrol poll of 18 economists, treasury heads and fund managers said that the MPC (Monetary Policy Committee) of the RBI is likely to cut repo rate by 25 basis points (bps) in the upcoming monetary policy due to the comfort provided by the lowest ever Consumer Price Index (CPI) inflation in the last two months.
If a rate cut happens in December, it will be the first reduction by the central bank after maintaining status quo in the last two policies.
The RBI has so far reduced repo rate by 100 bps from 6.5 percent to 5.5 percent between February and June. After that, the RBI MPC has maintained a status quo in August and October policy meetings.
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