Home BusinessIndia Inc mops up Rs 40,000 cr via debt in Q1
India Inc"s fund raising through private placement of debt surged 42 per cent to Rs 40,300 crore in the first quarter of the current fiscal, with over half of the fund being mobilised by financial institutions.
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The April-June quarter of the current fiscal witnessed a mobilisation through debt (bonds) on private placement basis of Rs 40,300 crore, up 42 per cent from Rs 28,385 crore raised in the first quarter of last financial year, market research firm Prime Database said.
With over 67 institutions and corporate houses raising the total amount during the June quarter of the current fiscal, the biggest mobilisation through the route came in from financial institutions, including banks.
A debt private placement refers to issue of securities, usually bonds, sold without a initial public offering, usually to a small number of chosen private investors.In the June quarter, fund raising of financial institutions through debt private placement increased 35 per cent to Rs 21,002 crore.
On sector-wise basis, private sector surpassed public sector in terms of fund raising. "The sector, which witnessed the most significant growth was the private sector whose mobilisation went up by 50 per cent from Rs 11,184 crore to Rs 16,753 crore," Prime Database Chairman and Managing Director Prithvi Haldea said.
The highest mobilisation through debt private placements during the June quarter was by Tata Motors (Rs 4,200 crore), followed by HDFC (Rs 2,500 crore), IRFC (Rs 2,311 crore), Tata Steel (Rs 2,151 crore) and Axis Bank (Rs 2,000 crore).
Government organisations and financial institutions, put together, witnessed a decline in their domination, mobilising 58 per cent of the total amount, down from 61 per cent mobilised in the previous year, the data said.
Fund mobilisation by PSUs through debt private placement went up by 48 per cent to Rs 2,300 crore during the June quarter.
Besides, state level undertakings raised Rs 242 crore, over double the amount raised last year.
On an industry-wise basis, the financial services sector continued to dominate the market, collectively raising Rs 24,922 crore or 62 per cent of the total amount, followed by automobiles with an 10 per cent share (Rs 4,200 crore).
During 2006-07, 2007-08 and 2008-09, India Inc mobilised Rs 93,855 crore, Rs 1,15,423 crore and Rs 1,74,327 crore, respectively.