India Inc raised over $3.71 billion from overseas markets in July through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).
In June,the Indian companies had raised $1.95 billion through the ECB and FCCB route.
Under the automatic route,as many as 72 companies raised $1.39 billion through the automatic route which does not require approval from the Reserve Bank of India (RBI) or the government,data on the RBI website showed today.
Under the approval route,ten companies raised around $ 2.32 billion through ECBs/FCCBs.
Reliance Industries raised a total of $ 2.15 billion in two separate tranches of $ 2 billion and $ 150 million through the ECB route for import of capital goods under the approval route.
Also under the approval route,Delhi International Airport raised $108 million for refinancing of rupee loans and Datamatics Global Services raised $10 million for overseas acquisition.
Under the automatic route,Indian Oil Corporation raised $500 million for rupee expenditure,Dr Reddy’s Laboratories raised $150 million for overseas acquisition and NTPC Limited raised $124.29 million power projects.
Ultratech Cement raised $50 million for modernisation and Kindle Engineering & Constructions raised $48 million for import of capital goods.
Shreya Life Sciences and Honda Cars India raised $30 million each for overseas expenditure and rupee expenditure respectively under the automatic route.
Indian firms use ECBs for the need of their additional funding so as to use resources which are available domestically. FCCBs also come under the same norms as ECBs.
External Commercial Borrowings not covered under the automatic route come under the approval route on a case-by-case basis by RBI.