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Indian companies raise $3.84 billion from abroad in March

04 May 2012 Evaluate

Indian companies have raised $3.84 billion from abroad in the month of March as per data released by the Reserve Bank of India (RBI). This is 48% higher than the amount of $2.6 million it raised in February. The money borrowed came from 126 deals and borrowers used external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) as modes of raising the amounts.

Also the borrowing from the overseas market over the month comprised of $3.2 billion through automatic route and $632.15 million via approval route. Rural Electrification Corp, Reliance Industries, Sasan Power, Mangalore Refinery & Petrochemical, Bhushan Steel, Idea Cellular, Adani Power Rajasthan, General Motors, India were among the major borrowers from the overseas market during the month.

Rural Electrification Corp raised a total of $448.92 million in two separate tranches via approval route for its power projects. Reliance Industries raised $391 million for import of capital goods via automatic route over the month. Bhushan Steel raised $290 million for rupee expenditure and Mangalore Refinery & Petrochemical raised $250 million for modernisation projects.

Telecom firm, Idea Cellular raised $150 million and Adani Power Rajasthan raised $145 million through automatic route. General Motors India raised $133.08 for imports of capital goods from the automatic route.

The growth of 48% in borrowings from abroad is an indication of the fact that credit is still expensive in the Indian markets. Moreover even though foreign funds have been shying away from investing in the domestic money markets, they still continue to participate in the business activity of the country.  

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