Overseas Fundraising by Indian Firms Hits $17.2 Billion, Highest in 7 Years on Debt-Driven Surge

Indian companies have recorded a major surge in overseas capital market fundraising during the current financial year, as per Business Standard news report.  

This multi year high is driven almost entirely by debt issuances, supported by central bank regulations designed to lower foreign borrowing costs. 

Massive Expansion in Overseas Debt Issuances 

Indian firms raised $17.2 billion through 43 issues between April and October in the first 7 months of FY27. This represents a substantial increase compared to the $5.1 billion mobilised across the entire 12 months of FY26. The latest fundraising tally is the fourth highest recorded since FY93, with only FY20 witnessing a higher recent total at $20.3 billion via 49 issues. 

Debt instruments accounted for $17.1 billion of the FY27 total, while convertible securities contributed the remaining $120 million. No equity issues were recorded during this 7 month period, marking the longest gap without an overseas equity issue in data stretching back to FY93. The drop in equity fundraising follows increased foreign portfolio investor activity directly inside domestic markets. 

Central Bank Interventions and Concessional Swap Facilities 

The Reserve Bank of India implemented targeted steps to manage hedging costs and support the national currency. On June 8, the central bank introduced concessional swap facilities for funds raised through external commercial borrowings, foreign currency non resident bank deposits, and overseas foreign currency borrowings.  

The foreign currency non resident bank deposit window officially closed on August 31, while the external commercial borrowings and overseas foreign currency borrowing windows remain open until December 31, 2026. 

Data from September 21, 2026, shows that $5.30 billion was successfully raised through external commercial borrowings utilising this specific swap facility. External commercial borrowings allow a broad framework of participants, including corporate firms, to access overseas loans and bonds. Conversely, the overseas foreign currency borrowing route remains restricted to regulated bank entities. 

Read More: Gland Pharma Share Price in Focus After Hitting 52-Week High as Q2 Profit Jumps 58%! 

Domestic Valuation Factors and Regulatory Updates 

Domestic market valuations for smaller, domestic focused groups remain higher inside India than developed overseas markets, which are heavily focused on large global firms and artificial intelligence. However, sector demand from overseas investors remains active for real estate, healthcare, infrastructure, and banking. To widen capital routes, the Securities and Exchange Board of India approved a new regulatory framework during its board meeting on September 24, 2026. 

This framework allows real estate investment trusts and infrastructure investment trusts to raise capital through depository receipts. A report published on October 14, 2026, noted that recent foreign exchange measures, including restrictions on speculative hedging and direct dollar supplies to oil marketing firms, are aimed at offering near term currency relief. 

Conclusion 

Indian companies raised $17.2 billion through 43 issues between April and October of FY27, exceeding the $5.1 billion raised in FY26. Debt comprised $17.1 billion of the total, while $5.30 billion utilized the central bank swap facility. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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