Fund-raising by Indian companies through private placement of debt securities or bonds hit the lowest monthly figure in more than seven years as it plunged to Rs 2,089 crore in August.
In the corporate debt market,Rs 2,088.71 crore was raised through 55 issues by way of private placement listed on BSE and NSE during August 2013 compared to Rs 12,182 crore through 141 issues in July 2013, market regulator Securities and Exchange Board of India (Sebi) said.
This was the lowest amount raised by the companies in a month through private placement of debt securities since February 2006,when they had mopped-up Rs 1,084 crore.
According to experts,the fund raising slumped in August because of weak market sentiments,economy slowdown and high rate of interest.
With the latest fund mobilisation,overall capital raised through private placement of debt securities reached to Rs 1.25 lakh crore in the current fiscal (April-August),lower than Rs 3.61 lakh crore mobilised in the entire last financial year (2012-13).