Listed companies mobilised nearly Rs 63,300 crore from the capital market in April to fund their business expansion plans, with debt emerging as the most preferred route for fundraising. Fresh capital was garnered by firms for debt payment, to fund capital expenditure for new projects, support inorganic growth like acquisitions as also for marketing and R&D purposes, market experts said.
Out of the cumulative Rs 63,278 crore garnered in April this year, funds totalling Rs 55,462 crore were mopped up from the debt market and the remaining Rs 7,816 crore came from the equity market, according to the data with Securities and Exchange Board of India (Sebi).
In comparison, companies raised Rs 19,588 crore through equities and Rs 14,750 crore from debt market in April 2022.
The higher fundraising in April last year through equities was primarily driven by preferential allotment of equity shares to the tune of Rs 13,675 crore and the Follow-on Public Offer of Ruchi Soya Industries that raked in Rs 4,300 crore through the route.