Indian firms raised a record Rs 4.92 lakh crore last fiscal through private placement of corporate bonds to meet business requirements, an increaee of six per cent from the preceding year.
Companies raked in Rs 4,92,047 crore in 2015-16 through private placement of corporate bonds, higher than Rs 4.66 lakh crore gathered in the preceding financial year ended March 2015, as per a report by Prime Database.
In debt private placements, companies issue securities or bonds to institutional investors to increase capital.
These funds have been raised mostly for expansion of business plans and to support working capital requirements.
Companies gathered to the debt route rather than raising capital through equity markets as the BSE's benchmark Sensex plunged by over nine per cent in the past fiscal.
Financial services sector continued to dominate the market, collectively raising Rs 3.18 lakh crore or 64 per cent of the total amount, Prime Database Managing Director Pranav Haldea said.
This was followed by power segment with an fund mop-up of Rs 58,499 crore, he added.