In what could be seen as a major upswing in fund raising, Indian companies collected close to Rs.8.7 lakh crore (Rs.8.70 trillion) from domestic and overseas markets in 2019. This is nearly 20% higher than the previous year. In the coming year also, merchant bankers are expecting a good appetite for debt instruments due to falling interest rates and improving health of NBFCs. Out of the above Rs.8.70 lakh crore garnered this year, the biggest chunk or Rs.6.2 lakh crore was mopped up from the Indian debt market, Rs.1.2 lakh crore from overseas bonds, and Rs.1.25 lakh crore from equity markets.

It is estimated that such funds have been predominantly mopped-up for business expansion plans, loan repayments and to support working capital, while a large amount raised from initial public offerings (IPOs) also went to the promoters since they were structured as offers for sale (OFS). Many promoters have seen this as an opportune moment to monetize their holdings. Out of Rs.6.2 lakh crore mopped up through Indian debt markets Rs.6 lakh crore came from private placement and only the balance through issuances.