New Delhi: India Inc has raised a record over Rs 1 trillion through issue of corporate bonds on private placement basis in fiscal 2007-08, driven by huge mobilisations by financial institutions and banks, a latest report says.
According to data complied by capital market data provider Prime, the funds raised have increased substantially to Rs1,15,266 crore last fiscal from Rs93,855 crore in FY 2006-07, a jump of over 23%.
Financial Institutions and banks’ fund raising through private placement of corporate debt went up by 27% to Rs 90,164 crore last year from Rs 71,193 crore a year-ago, a Prime statement said.
The other sectors which witnessed a significant growth was the private sector, whose mobilisation went up by 49% to Rs 21,689 crore from Rs 14,540 crore in 2006-07.
The mobilisation by state level undertakings also grew by 79% to Rs 1,348 crore in the reviewed year from Rs752 crore in the previous year and state financial institutions by 10% to Rs1,309 crore as against Rs1,192 crore in the previous year, the statement added.
On the other hand, a major fall in mobilisation came from PSUs, down by 88% to only Rs 756 crore, compared to Rs 6,178 crore in the previous year.
Government organisations and financial institutions, put together, witnessed a decline, mobilising 81% of the total amount, down from 85% in the previous year, it added.
Among government organisations, all-India financial institutions/ banks led with a 78% share, followed by a 1% share by State Financial Corporations (SFC), a 1% share by PSUs, and a one per cent share by state level undertakings.
“On an industry-wise basis, the financial services sector continued to dominate the market, raising Rs 1, 04,473 crore or 90% of the total amount. Power ranked second with a three per cent share (Rs 3,468 crore), followed by diversified (Rs 2,250 crore),” Prime database Managing Director Prithvi Haldea said.