Is it true that the fund raising in recent months has been more by way of debt than by way of equity?

According to data put out by Prime Database, Indian companies are estimated to have raised Rs.73,215 crore from the capital markets in the month of October. This includes monies collected through the equity and debt route. The fund raising was predominantly through the debt private placement route.

The amount of money raised from the capital market is marginally lower than Sep-20 and sharply lower than the month of Aug-20 when more than Rs.110,000 crore was raised. Out of this total amount raised in Oct-20, Rs.62,331 crore was via the route of privately placed debt while Rs.4,144 crore was through the route of privately placed equity.

Public issues were relatively much smaller. The public issues in October raised Rs.5,825 crore through the equity route through 6 main-board offerings. These include IPOs of UTI, Angel, CAMS, Chemcon, Likhita and Mazagon Docks. This excludes the Rs.200 crore raised via SME IPOs. An additional Rs.550 crore during Oct-20 was raised through rights issues.