New Delhi: Indian companies raised more than Rs 1.34 lakh crore in the first quarter of the fiscal through private placement of corporate bonds to meet business needs.
According to latest data available with Securities and Exchange Board of India (Sebi), firms raked in Rs 1,34,455 crore last quarter, which ended on June 30, through private placement of corporate bonds.
It was lower than Rs 1,41,623 crore garnered in the same period a year ago, a fall of 5 percent.
In terms of numbers, 893 issuances were made in April-June quarter of this fiscal, as compared to 912 in the same period of 2015-16.
These funds have been raised mainly for expansion of business plans and to support working capital requirements. Corporate bonds are debt instruments used by companies for the purpose of raising capital. These are called fixed-income securities because they pay a specified amount of interest on a regular basis.
In a privately-placed bond issue, allocation is made to institutional investors.