New Delhi: Amid the global credit crunch, corporate India’s overseas fund raising almost halved to $17.58 billion in fiscal 2008-09 in comparison with 2007-08.
The total funds raised from abroad through various securities such as American Depository Receipts (ADRs), Global Depository Receipts (GDRs), External Commercial Borrowing (ECBs) and Foreign Currency Convertible Bonds (FCCBs) have fallen by 47.66%, according to an analysis by domestic brokerage firm SMC Capitals.
Corporates raised $17.58 billion in 2008-09 while it had mopped up $33.59 billion through these securities in financial year 2007-08.
“The reduced fund raising is already giving unmistakable signs of slowdown in the capacity expansion and industrial production by Indian corporates as the fuel for growth engine is dried up,” SMC Capitals Equity head Jagannadham Thunuguntla said.
Besides, the corporates had a tough time in raising funds in the domestic market as the IPO volumes in India have dipped by 50.54% from $8.18 billion in 2007 to $4.05 billion in 2008.
There was only one IPO in the first three months of 2009.
Similarly, fund raising through private equity has also been dented substantially.