Listed firms mopped up ₹7.72 lakh crore through issuance of bonds on private placement basis in 2020-21, an increase of 14% from the preceding fiscal, supported by low interest rate and surplus liquidity in the system.
This also marks the highest level of fund raising through such a route in a financial year.
Going forward, sustainability of growth trend mainly depends on the trajectory of cost of funds and incremental liquidity in the system, Binod Modi, head-strategy, Reliance Securities, said.
According to data available with markets regulator SEBI, companies listed on the BSE and NSE garnered a total of ₹7.72 lakh crore through issuance of bonds in the just concluded financial year, much higher than ₹6.75 lakh crore raised in 2019-20.
However, Mr. Modi is of the view that cost of funds is unlikely to remain as low as witnessed in the last two years and therefore, any noticeable growth in fund raising through debt private placement does not look to be on the cards in FY22.
