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Fund mop-up by private cos from debt placement rises 36%

A total of Rs 51,422 crore was raised by private sector companies from debt on a private placement basis during April-September period of 2013-14, according to latest report by Prime Database.

December 16, 2014 / 15:55 IST
     
     
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    Fund mobilisation by private sector companies through private placement of debt securities surged by 36 percent to Rs 70,031 crore, while for public sector undertakings (PSUs) it dropped, during the first half of 2014-15 as compared to the same period year-ago.

    A total of Rs 51,422 crore was raised by private sector companies from debt on a private placement basis during April-September period of 2013-14, according to latest report by Prime Database.

    However, a fall in fund raising was witnessed by Public Sector Undertakings (PSUs), for the period under review. The amount mopped up by these firms dropped by 30 percent to Rs 8,912 crore.

    Besides, national-level financial institutions, including banks raised Rs 78,485 crore from debt placement route, in the first half of the current fiscal - an increase of 23 percent from the period year-ago.

    Mobilisation by state level undertakings also rose by 32 percent to Rs 1,502 crore as compared to Rs 1,133 crore. At the same time, state financial institutions saw a 56 percent decline in amount mobilised via the corporate bond placement route. These entities garnered Rs 548 crore in April-September period of 2014 as against Rs 1,251 crore in the year-ago period.

    Fund mop-up by various entities, including financial institutions, PSUs and private sector companies stood at a cumulative amount of Rs 1,59,477 crore, for the first half of the current fiscal - an increase of 22 percent from corresponding year-ago period, the data found.

    "This (Rs 1,59,477 crore) was mobilised by 181 institutions and corporates," Prime Managing Director Pranav Haldea said.

    Of the total 188 issues, 155 belonged to private sector players, followed by 16 issues by All-India Financial Institutions and Banks.

    The highest mobilisation through debt private placements during the period was by HDFC (Rs 16,495 crore), REC (Rs 13,465 crore), PFC (Rs 12,182 crore), LIC Housing (Rs 9,615 crore), EXIM Bank (Rs 6,418 crore) and IDFC (Rs 5,609 crore).

    According to Haldea, on an industry-wise basis, the Financial Services sector continued to dominate the market with 72 percent share (Rs 1.13 lakh crore). Power sector ranked second with a 9 percent share (Rs 14,527 crore).

    first published: Dec 16, 2014 03:55 pm

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