Out of the cumulative ₹8.68 lakh crore garnered this year, a large chunk or over ₹6.2 lakh crore has been mopped up from the Indian debt market, ₹1.2 lakh crore from overseas bonds, and the remaining ₹1.25 lakh crore came from equity markets, data compiled by analytics major Prime Database showed. In 2018, firms had raised ₹7.25 lakh crore, including nearly ₹6 lakh crore through debt markets, over ₹79,300 crore from equities and close to ₹46,500 crore from overseas route. Of the total ₹6.2 lakh crore mopped up through Indian debt markets, over ₹6 lakh crore came from private placement and ₹16,425 crore through public issuance. With 10-year bond yield hovering around 6.9 per cent, raising debt is attractive and the excess liquidity in the system ensures raising funds through debt is easy for good companies. In addition, funds mop-up via OFS route -- used for dilution of promoters’ holdings -- climbed to ₹25,811 crore in 2019 from ₹10,672 crore in the preceding year.

Source: Mint December 29, 2019 10:52 UTC