Debt private placement mobilisation down 29% to Rs 1,81,808 cr in Apr-Dec 2013-14

New Delhi, March 10, 2014

The first nine months of the current fiscal 2013-14 witnessed a mobilisation through corporate bonds on private placement basis of Rs.1,81,808 crore, Prime Database said today.
This was mobilised by 188 institutions and corporates, said a press release from Prime, which operates the country's premier and only database on debt private placements.
Only such deals which have a tenor and put/call option of above 365 days have been considered, it said.
On a period-on-period basis, the April-December period’s raising of Rs.1,81,808 crore was a huge decrease of 29 per cent over Rs. 2,56,327 crore mobilised in the corresponding period of the previous year, courtesy lower raisings by the financial institutions/banks, according to Mr. Pranav Haldea, Managing Director of Prime.
Full year mobilisations for previous years through debt private placements have been given in the table, he said.
According to Prime, the biggest mobilisation in the nine-month period was again made by the category of All-India Financial Institutions/Banks at Rs.98,145 crore. This was in comparison to Rs.1,35,379 crore in the corresponding period of the previous year, representing a decrease of 27 per cent.
According to Mr. Haldea, mobilisation by the private sector also witnessed a decrease; it went down by 25 per cent to Rs. 66,632 crore compared to Rs.88,336 crore in the corresponding period of the previous year. Mobilisation by State Financial Institutions (SFIs) also went down by 73 per cent to Rs.1,251 crore compared to Rs. 4,569 crore.
Mobilisation by PSUs also was lesser by 43 per cent at Rs.13,069 crore compared to Rs.23,052 crore and mobilisation by State Level Undertakings (SLUs) also saw a major fall by 46 per cent to Rs. 2,711 crore compared to Rs.4,992 crore in the corresponding period of the previous year.
Government organisations and financial institutions put together, mobilised 50 per cent of the total amount, same as corresponding period of the previous year. As per Prime, among government organisations, All-India Financial Institutions/Banks led with an 82 per cent share, followed by a 14 per cent share by PSUs, 3 per cent share by SLUs and 1 per cent share by SFIs.
The highest mobilisation through debt private placements during the period was by PFC (Rs.18,648 crore), followed by HDFC (Rs.16,675 crore), LIC Housing (Rs.14,170 crore) and REC (Rs.14,113 crore).
According to Mr.Haldea, on an industry-wise basis, the Financial Services sector continued to dominate the market, collectively raising Rs.1,33,111 crore or 73 per cent of the total amount. Power ranked second with a 7 per cent share (Rs.13,160 crore), he added.

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