India Inc raised 1,07,177 cr funds via debt in H1 FY11

India Inc raised 1,07,177 cr funds via debt in H1 FY11

Mumbai: India Inc witnessed fund-raising of around Rs1,07,177 crore through debt (bonds) on a private placement basis in the first-half of the current fiscal, a 23% jump over the same period a year-ago, according to a report by Prime Database.

Prime Database, the country’s first and only database dedicated to the capital markets, said last fiscal the figure stood at around Rs86,796 crore.

The amount was mobilised by only a handful of 127 institutions and corporates, according to the report.

“The April-September (H1 FY11) period’s raising was up 23% at 1,07,177 crore as against 86,796 crore in the corresponding period the previous year," Prime Database’s managing director, Prithvi Haldea, said in the report.

This year’s figure is the highest in the last one decade, he said, adding that the full year of 2001-02, 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 had witnessed mobilisations of Rs45,427 crore, Rs48,424 crore, Rs48,428 crore, Rs55,409 crore, Rs81,847 crore, Rs93,855 crore, Rs1,15,423 crore, Rs1,74,327 crore and Rs1,89,478 crore, respectively.

The report further said financial institutions and banks made the biggest mobilisation. It was up 33% at Rs68,314 crore compared to Rs51,488 crore in the corresponding period of the previous year.

There was also a marginal increase of 14% in mobilisation from the private sector at Rs30,912 crore as compared to Rs27,210 crore in the year-ago period.

However, this year the mobilisation from public sector firms witnessed a slump of 7% to Rs7,355 crore compared to Rs7,887 crore in the same period in FY10.

Meanwhile, the sector which witnessed the most significant growth was the state financial institutions whose mobilisation went up by 395% from Rs20 crore to Rs99 crore and state level undertakings whose mobilisation went up by 159% from Rs192 crore to Rs496 crore, the report said.

The highest mobilisation through debt private placements during the period was by PFC (Rs10,293 crore), followed by IDFC (Rs8,038 crore), LIC Housing (Rs7,230 crore), HDFC (Rs6,825 crore), Export-Import Bank (Rs3,970 crore), NHB (Rs3,675 crore), IRFC (Rs3,455 crore), REC (Rs3,250 crore) and NABARD (Rs3,100 crore).

Industry-wise, the financial services sector continued to dominate the market by collectively raising Rs80,749 crore or 76% of the total amount followed by the power sector at an eight per cent share (Rs8,185 crore), the report said.