Fundraising jumped 64% to ~1.1 trillion in August

Companies garnered more than ~1 trillion from the capital markets in August, a surge of 64 per cent from the preceding month, with private placement of debt instruments emerging as the most preferred route for financing business needs.

The funds have been mopped-up mainly for business expansion plans, loan repayments and working capital requirements.

According to data available with the markets regulator Sebi, companies raised ~1.1 trillion in August, as against ~66,915 crore in July 2020 by way of issuing equity and debt securities.

As much as ~58,419 crore was mopped up from private placement of debt securities and ~45,471 crore through private placement of equity, which include qualified institutional placement (QIP) and preferential allotment routes.

A total of ~42,725 crore and ~2,746 crore were raised through QIP and issuance of shares on preferential allotment basis, respectively.

In comparison, corporates had mobilised just ~2,882 crore from private placement of equities in July.

When it comes to raising funds through public issuance in August, ~6,096 crore was raised through rights issue and ~11.5 crore by SMES' initial share-sales.

There was no public issue of corporate bonds in the month of August 2020. However, during July 2020, there was one public issue of corporate bonds amounting to ~160 crore, the data showed.