Fund mobilisation through privately placed corporate bonds in India reached a record high of Rs9.77 lakh crore in FY24, a 15% increase compared to the previous year. Indian companies preferred this method as it is cost-efficient and cheaper than equities. Fundraising through the equity route totaled Rs 1.26 lakh crore, with QIPs contributing significantly. This article provides insights into the fundraising activities in the Indian market.
During the first-half of FY24, 20 companies have together raised ₹18,500 crore through QIPs, while another dozen have already announced plans to raise up to ₹25,000 crore through this route. According to bankers, most of the QIP funds will be used for new projects, modernisation, infrastructure development, and purchase of capital goods, while lenders would utilize the proceeds for long-term capital requirements.
