Indian companies have raised over Rs 2 lakh crore by issuing bonds on private placement basis on BSE’s electronic book mechanism since its launch last July.
“Investors have evolved to a great extent and are now more receptive and open to diversification into new assets class,” BSE chief executive and Managing Director Ashishkumar Chauhan said in a statement.
The BSE-BOND was launched on July 1 to facilitate online bidding for private placement of debt securities. Since then, 68 companies have raised Rs 2,00,111 crore through it.
On Wednesday HDFC and IREDA garnered Rs 1,498 crore and Rs 200 crore by issuing debt securities on private placement basis using the platform.
“Indian companies have raised about Rs 2 lakh crore by issuing bonds through private placement on BSE’s electronic book mechanism since its launch,” Chauhan said.
In comparison, he said, firms raised around Rs 10,000 crore from rupee—denominated bonds, also called masala bonds, in the last 1—2 years.
Some of the firms that have raised funds through the BSE platform in the current fiscal include NTPC, Axis Bank, HDFC, Power Finance Corporation, REC, Yes Bank, NHAI, IRFC, HUDCO and NABARD.
The funds have been mobilised from various sources, including banks, mutual funds, insurance companies, foreign portfolio investors and corporates.
The platform, which allows all categories of investors to place bids, helps bring in transparency and efficiency in price discovery for private placement of debt securities.
The e—book mechanism is mandatory for all private placement issues on debt basis for more than Rs 500 crore.
It is optional for issues below Rs 500 crore, but the issuers will have to disclose coupon, yield, amount raised, number and category of investors to the electronic book provider or the information repository for corporate debt market in the format as specified by regulator Sebi.
