India Inc's overseas fund raising dips 48 pc in FY'09

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 per cent, according to an analysis by domestic brokerage firm SMC Capitals.

India Inc raised $17.58 billion in 2008-09 while it had mopped up $33.59 billion through these securities in financial year 2007-08.

"This reduced fund raising is already giving unmistakable signs of slow down in the capacity expansion and industrial production by Indian corporate as the fuel for growth engine is dried up," SMC Capitals Equity Head Jagannadham Thunuguntla said.

Besides, India Inc had a tough time in raising funds in the domestic market as the IPO volumes in India have dipped by 50.54 per cent 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.