Fund raising by listed companies through private placement of corporate bonds dropped 39 per cent to Rs 32,405 crore in the first two months of the current financial year, and outlook for the rest of the fiscal is uncertain too on expectation of further hike in interest rates. In comparison, Rs 53,253 crore was raised through the route during April-May 2021-22, data with the Securities and Exchange Board of India (Sebi) showed.
Notably, fundraising through the route plunged to a six-year low in 2021-22 to Rs 5.88 lakh crore owing to good performance of the equities and aggressive fund disbursal by banks at lower interest rate. “Moreover, the outlook for the rest of the financial year is quite uncertain as interest rates are expected to firm up further, liquidity to get tighter and inflation to remain high. In such an environment, aggregate demand is likely to remain subdued thereby suppressing the demand for credit as well,” Sandeep Bagla, CEO Trust MF, said.
Reference Link:- https://www.news18.com/news/business/fund-raising-via-debt-placement-drops-39-to-rs-32405-crore-in-apr-may-on-hike-in-interest-rates-5484541.html