Listed companies raise 63,300 crore in April; debt emerges as the most preferred route: Report

Updated: 06 Jun 2023, 10:20 AM IST
TL;DR.

Market experts said that debt markets are mostly tapped by the financial sector companies who use funds for onward lending (as the economic cycle gathers pace) and boost capital buffers.

Within the equity segment, funds mostly came from preferential allotment of equity shares.

In April, listed companies raised approximately 63,300 crore from the capital market to support their business expansion initiatives. Among the various fundraising options available, debt emerged as the most favored choice for these companies, PTI reported, citing data from the Securities and Exchange Board of India (SEBI).

Out of the cumulative 63,278 crore garnered in April this year, funds totalling 55,462 crore were mopped up from the debt market, and the remaining 7,816 crore came from the equity market. In comparison, companies raised 19,588 crore through equities and 14,750 crore from the debt market in April 2022, the report said.

The higher fundraising in April last year through equities was primarily driven by preferential allotment of equity shares to the tune of 13,675 crore and the follow-on public offer of Ruchi Soya Industries, which raked in 4,300 crore through the route.

Of the total 55,462 crore raised through debt markets in April this year, 53,426 crore came from the private placement and 2,036 crore was through public issuance.

Market experts said that debt markets are mostly tapped by the financial sector companies who use funds for onward lending (as the economic cycle gathers pace) and boost capital buffers, the report stated.

Within the equity segment, funds mostly came from preferential allotment of equity shares, with companies raising 4,835 crore through this route, the report noted.

Further, a total of 10 firms collected 1,110 crore through initial public offerings (IPOs). Of these, two main-board companies brought in 931 crore, and eight small and medium enterprises (SMEs) mopped up 179 crore, according to the report.

In addition, fresh capital to the tune of 1,000 crore came in through the qualified institutional placements (QIPs) route, and 871 crore was raised through four rights issues, the report added.

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An IPO is the process by which a private company can go public by offering its stock to the general public for the first time.
First Published: 06 Jun 2023, 10:20 AM IST