Business & Economy
Debt private placement mobilisation down 55% to Rs 43,147 crore in Q1
New Delhi, September 1, 2014
India witnessed mobilisation of Rs 43,173 crore by 81 institutions and corporate through corporate bonds on private placement basis in the first quarter of the current fiscal year 2014-15, down 55 per cent from the level in the same period of the previous year.
Prime Database, which operates the country’s premier and only database on debt private placements, said only such deals which have a tenor and put/call option of above 365 days had been considered.
According to it, on a period-on-period basis, the April-June period’s raising of Rs.43,147 crore was a huge decrease from the Rs. 96,186 crore mobilised in the corresponding period of the previous year, courtesy lower raisings by the financial institutions/banks.
Prime Managing Director Pranav Haldea said the highest mobilisation in the first quarter was made by the private sector at Rs. 28,991 crore as compared to Rs. 38,161 crore in the corresponding period of the previous year, representing a decrease of 24 per cent.
Mr Haldea said mobilisation by the all-India financial institutions (FIs)and banks also witnessed a huge decrease; it went down by 72 per cent to Rs.13,058 crore compared to Rs. 47,272 crore in the corresponding period of the previous year.
Mobilisation by state financial institutions (SFIs) too went down by 92 per cent to only Rs. 98 crore compared to Rs. 1,251 crore. Mobilisation by PSUs was nil compared to Rs. 8,568 crore in the corresponding period of the previous year. Mobilisation by State Level Undertakings (SLUs) though saw an increase of 7 per cent to Rs. 1,000 crore compared to Rs. 933 crore in the corresponding period of the previous year.
Prime said that government organisations and financial institutions, put together, mobilised 15 per cent of the total amount, less than the 47 per cent raised by them in the corresponding period of the previous year. It said that, among government organisations, all-India FIs and banks led with an 84 per cent share, followed by a 15 per cent share by SLUs and 1 per cent share by SFIs.
The highest mobilisation through debt private placements during the period was by HDFC (Rs. 4,450 crore) followed by EXIM Bank (Rs. 3,018 crore), IOT Utkal (Rs. 3,000 crore), IDFC (Rs.2,730 crore), and Reliance Jio (Rs.2,500 crore).
According to Mr.Haldea, on an industry-wise basis, the financial services sector continued to dominate the market, collectively raising Rs.26,407 crore or 62 per cent of the total amount. Real estate sector ranked second with a 9 per cent share (Rs. 4,056 crore).