India Inc ready for sophisticated capital raising options:BoA study

Mumbai, Nov 14 (UNI) India's major corporations have reached a new level of maturity in the sense they can integrate with global financial markets and are ready for more sophisticated capital raising alternatives, said a briefing paper brought out by Bank of America(BoA)'s Economist Intelligence unit, here today.

The BoA's briefing paper titled 'Funding Corporate India: Opportunities in International Financial Markets' announced by the Bank uncovers and explores the reasons behind corporate India's quest for funding and discusses the instruments they favour.

Addressing a press conference here, BoA's Country Executive Officer for India, Vishwavir Ahuja said this report affirms the Bank's view on India's major corporations having reached a new level of maturity.

''With our knowledge and deep understanding of these markets, BoA is well positioned to help our clients realise their global ambitions,'' he said.

The demand for capital stems from funds needed for growth and diversifications, besides mergers and acquisitions, Mr Ahuja noted.

Raising funds overseas, he continued, has become increasingly attractive because of lower costs, greater flexibility, speed of execution and the significant depth of the international financial markets.

The paper's findings are based on interviews with financial experts, government officials and companies involved with or interested in Indian and international financial markets. Key insights include the fact that India has led all other Asian emerging markets in terms of growth of private inflows from loans raised overseas by indigenous companies in the past five years.

With more than 40 years of experience in India, BoA said it has built strong relationships with large overseas institutional investors and is one of the leaders in providing fund raising solutions for large Indian companies. In September 2006, Banc of America Securities helped Reliance Industries raise US$ 300 million from the US Private Placement market, the first deal of its kind for an Indian company.

This is the second time that BoA has supported a research by the Economic Intelligence Unit. In 2005, the bank also supported a White Paper titled ''Domestic Companies in China: Taking on the Competition'' -- a study of domestic Chinese companies and why they are not rushing to invest overseas.

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