Structured flexible capital: Beyond traditional debt and equity

High-yield debt markets have limited depth in India and founders don't want to be seen taking on expensive debt, which is perceived as a sign of stress

rupee, loan, indian rupee

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Dev Santani
Macroeconomic headwinds have impacted capital inflows globally and in India as well. Access to traditional sources of capital has tightened, inflation has largely been near the higher end of the Reserve Bank of India’s (RBI’s) target range and interest rates have been raised by 250 basis points, in line with global trends. Rising interest rates have created cash flow pressure for companies with a focus on debt repayment, and increased borrowing costs.
The BSE 100 is at an all-time high due to increased fund flows into the Indian equity market. Inflows to Indian equity mutual funds jumped 31 per cent sequentially to $2.5 billion in March 2023 buoyed by strong retail participation. However, public market premiums in valuations don’t necessarily
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

First Published: Jul 07 2023 | 10:57 PM IST

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