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Companies found it difficult to raise funds this year, the first half of the new year is likely to be challenging


Photo: File Fund

stock market of companies The exercise of raising funds through debt has come down by about 20 percent to Rs 11 lakh crore in 2022. The enthusiasm has also cooled down due to costlier loans and volatility in the markets. In such a situation, the first half of 2023 can be challenging. 2021 was a great year for fund raising, while 2022 turned out to be subdued due to skyrocketing global inflation and volatility caused by the Russia-Ukraine war. Vishal Chandirmani, Managing Partner (Product) and Chief Operating Officer, Trustplutus Wealth (India) Pvt Ltd said, “The first half of 2023 is likely to be challenging due to the developments taking place globally. If the impact of recession in America remains minor then we can expect a boom in global markets in the second half of next year.

Slow pace of IPO market crisis

However, he added that raising funds in the next few years may be tougher than in the past, even if markets pick up. There has been some growth in finance raised through the debt market over the past year, while fresh finance raised through equity has decelerated sharply. In fact, due to geopolitical tension, the exercise of raising finance through IPO in 2022 was reduced to half. Fund raising from the debt market has been the major contributor to the total fund raising activities this year. According to the data of the analysis company Prime Database, till the middle of December this year, a total fund of Rs 11 lakh crore was raised, of which Rs 6.92 lakh crore came from the debt market, Rs 1.62 crore from the equity market and Rs 2.52 lakh crore from foreign routes. Returns. In the year 2021, companies had raised Rs 13.6 lakh crore, of which Rs 6.8 lakh crore was through debt, Rs 2.85 lakh crore from equity, out of which a record Rs 1.2 lakh crore was raised from IPOs.

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The impact of tightening monetary policies

These figures show that while the environment was very attractive in 2021 for fund-raising activities, it is a stark contrast in 2022. Nirav Karkera, Head of Research, Fisdom, said, “2021 has been a great year for debt refinancing at low cost, fresh capital raising through debt at highly optimized cost as well as taking advantage of good valuations amid positive sentiment ”He said that there was no stimulus in 2022, monetary policies tightened, inflation concerns increased around the world and there were many challenges including disruption of global supply chains due to the Russia-Ukraine war.

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