Corporate India raises around Rs40,500 crore in debt in April-May

Indian companies have raised around Rs40,500 crore through private placement of bonds in the first two months of the current fiscal (April-May 2010), up 43 per cent from the Rs28,239 crore raised during the same period last financial year.

The companies, which are listed either on the National Stock Exchange or the Bombay Stock Exchange or both issued a total of 251 bonds, raising a total of Rs40,488.45 crore in April-May 2010, data provided by the Securities and Exchange Board of India (SEBI) showed.

This included Rs16,514.18 crore raised through issue of 139 bonds in April and Rs23,974.27 crore raised through 112 bonds in May.

Against this, privately placed corporate bonds stood at 123 during April-May 2009 of the previous fiscal.

During the January-May 2010 period, listed companies in the country raised Rs114,000 crore through 681 bond issues, against Rs91,772.46 crore raised through 390 bonds during the same period a year ago.

Companies have raised over Rs212,000 crore through corporate bonds in FY'10 compared with Rs173,000 crore raised during 2008-09.

With equity markets under pressure, companies opted to tap the debt route rather than go for equity issues. Corporate bonds are long-term debt instruments and are a secured option for private companies to raise funds.