When it comes to DCM, capital mobilization through debt markets has fallen dramatically in recent years, although equity fund raising has been robust, and the stock market Bull Run with liquidity all around has resulted in record fund-raising through initial public offerings.
Despite a decrease in debt-based fund mobilization, it continued to account for the lion’s share of total fund-raising operations in 2021. Debt fund-raising has slowed as a result of long-term economic disruptions caused by the coronavirus pandemic’s first wave, followed by the disastrous second wave’s long-term impact.
Businesses came to a halt as a strict lockdown was imposed since March 2020, and to manage the negative impact of the same, corporates resorted to debts, the stock market was down for the majority of the year, and PE/VC markets were also not that active, leaving businesses with few options other than debt funding in 2020.
Financial sector enterprises in India typically employ Indian debt markets to promote forward lending (as the economic cycle accelerates) and improve capital buffers. The number of corporate bond issuances grew by 10% in 2020-21, while the amount raised increased by 13.5 percent over the previous fiscal year 2019-20.
On 22nd march 2022 this info came out in public that Indiabulls Housing Finance proposal for raising a capital upto 50,000 crore using non-convertible bonds (NCD’s) or bonds via private placements basis had been approved by the committee.
Another best example for raise can be a Reliance offers raising of $4 Billion using largest ever foreign currency bonds.