India Inc raises Rs23,200 cr via bonds in Q1: Prime

India Inc raises Rs23,200 cr via bonds in Q1: Prime

New Delhi: India Inc has mobilised a whopping Rs23,252 crore through private placement of bonds in the first three months of current fiscal, even as government entities witnessed a decline in such borrowings.

The funds were mobilised by 36 institutions and represent a 23% increase against Rs18,851 crore raised in the same period last fiscal, according to database creator Prime, which took into account deals that have a tenor of more than one year.

Private sector accounted for an 85% jump in borrowing through bonds to Rs4,598 crore from Rs2,483 crore in the first three months last fiscal.

However, government organisations and financial entities, put together, witnessed a decrease in their domination, as they mobilised 80% of the total amount, down from 86% a year ago.

The major fall was registered by state level undertakings as they did not mobilise any fund through the instrument, against Rs50 crore raised in the year-ago period.

State financial institutions also recorded a fall and touched a level of Rs15 crore from Rs77 crore last year, a 81% fall.

All-India financial institutions raised funds worth Rs18,639 crore, a 15% increase from Rs16,241 crore in the corresponding period of the previous year.

Industry-wise, financial services sector, according to Prime, continued its dominance on the market as its collective raising was Rs21,962 crore or 95% of the total mobilisation. Power ranked second with 5% share at Rs1,065 crore.

NABARD mobilised the highest amount of Rs5,370 crore through private placement of bonds, followed by HDFC (Rs2,600 crore) and SBI (Rs2,523 crore).

Power Finance Corporation borrowed Rs1,320 crore, Indian Railway Finance Corporation Rs1,190 crore, Citifinancial Rs1,095 crore and Power Grid Corporation Rs1,065 crore.

Total raising through private placement of bonds last year was Rs92,355 crore.

Corporate India also raised Rs9,113 crore through issue of debentures with a tenor of less than one year. In this, Prime took into account 202 deals by 24 entities.

Moreover, Rs2,317 crore was raised in 17 deals through pass-through certificates, Prime said.