Among reasons for the shift could be higher cost of servicing debt, bond holders' risk awareness making roll-over option expensive at the time of repayment, and reputation issues, writes T N Ninan
Why are Hinduja and Torrent sparring over RCap? Is ride-hailing market ripe for disruption? What are India Inc's fundraising plans for 2023? What's the fight over Belagavi? All answers here
Fund mobilisation by companies through equity and debt routes has dropped 20 per cent in 2022 to nearly Rs 11 lakh crore, as exuberance dwindled this year due to expensive credit avenues and volatile markets. The first half of 2023 could continue to remain challenging. The year 2021 was extraordinary for fundraising from the equity and debt routes, while 2022 has seen a slowdown in capital raising owing to elevated volatility provoked by unprecedented inflation globally and the Russia-Ukraine war. "The first half of 2023 could continue to be challenging, largely driven by global macro developments. If the slowdown/recession in the US is mild, then we could see a rally in global markets in the second half of next year, which would aid investor sentiment and the Indian markets as well," said Vishal Chandiramani, Managing Partner Products and COO, TrustPlutus Wealth (India) Pvt Ltd. Even with a bounce back in markets, it will be more difficult to garner funds over the next few years as
145 new companies were set up in India in the past two years - 123 in 2021 and 22 in 2022: Tracxn data
Where is India's SUV market headed? Why Cannes Ad fest 2022 was India's '1983 moment'? How market uncertainty will impact India Inc's fund-raise plans? What is data anonymisation? Answers here
India's stock market is passing through rough weather. Will the uncertainty in the secondary markets and rising interest rates impact the fund-raising plans of India Inc.? Here is a quick check
All-time high not far away with Paytm planning fresh issue of Rs 12,000 cr
Since the start of the year local companies have raised a record $12.9 billion via offshore bonds and $12.3 billion from loans, the highest in three years
Among the major borrowers, HPCL-Mittal Energy Ltd raised $ 350 million for rupee expenditure
In private placement of bonds, firms issue securities or bonds to institutional investors to raise capital