Private placement of debt dips 29% in 9 months

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Private placement of debt has dropped 29 percent in the nine months during April- December 2013, said a PRIME Database report on Monday.

Also Read: Indian cos mop up Rs 20,000 cr via debt placement in Feb

Mobilisation through corporate bonds on private placement basis for the nine months stood at Rs 1,81,808 crore, against Rs 2,56,327 crore in the year-ago period due to lower raisings by the financial institutions and banks, said the report. The amount was mobilised by 188 institutions and corporates.

According to the report, mobilisation by private sector has witnessed a decline, falling 25 percent to Rs 66,632 crore as against Rs 88,336 crore in the corresponding period of the previous year. For State Financial Institutions (SFIs), it went down by 73 percent to Rs 1,251 crore from Rs 4,569 crore; and for PSUs it stood 43 percent lesser at Rs 13,069 crore against Rs 23,052 crore.  

Mobilisation by State Level Undertakings (SLUs) also saw a major fall by 46 percent to Rs 2,711 crore as compared to Rs 4,992 crore in the corresponding period of the previous year, the report added. 

According to PRIME, on an industry-wise basis, the Financial Services sector continued to dominate the market, collectively raising Rs 1,33,111 crore or 73 percent of the total amount. Power ranked second with a 7 percent share (Rs 13,160 crore).

The highest mobilisation through debt private placements during the period was by Power Finance Corporation (PFC) at Rs 18,648 crore, followed by HDFC (Rs 16,675 crore), LIC Housing (Rs 14,170 crore) and REC (Rs 14,113 crore).