A review of the most recent Prime Database data, fundraising through corporate bonds on a private placement basis in India increased by 31% to an all-time high of Rs 8,30,532 crore during the fiscal year 2022-23. During the year, 855 institutions and corporations raised funds.
Deals, both listed and unlisted, with a tenor and put/call option of more than 365 days have been considered, according to Prime Database, a leading database on the primary capital market.
According to Pranav Haldea, managing director of PRIME Database Group, this is due to a combination of factors including higher overseas borrowing costs, an increase in credit demand, higher bank loan rates, and large issuances by some issuers.
The highest fundraising was done by the all-India financial institutions and banks category during 2022-23, at Rs 4,17,323 crore, compared to Rs 2,68,413 crore the previous year, representing a 55% increase.
The private sector (excluding banks/FIs) increased its mobilisation by 12% to Rs 3,39,033 crore in 2021-22, compared to Rs 3,02,985 crore in 2021-22.
"Government entities mobilised 40% of the total amount, which is higher than 34% in 2021-22." "Among government entities, all-India financial institutions/banks led with a 78% share, followed by PSUs with a 17% share," Prime Database said in a statement.