Economy

Private placement of debt up 11% in Q1: Prime Database

PTI Mumbai | Updated on March 12, 2018 Published on September 04, 2013

The first quarter of the current fiscal witnessed a mobilisation of Rs 87,840 crore through corporate bonds on private placement basis, according to Prime Database which operates the country’s only database on debt private placements.

This was mobilised by 109 institutions and corporates, Prime Database said in a statement here.

On a period-on-period basis, the April-June period raising of Rs 87,840 crore was an increase of 11 per cent over Rs 78,960 crore mobilised in the corresponding period of the previous year, Prime Database Managing Director Pranav Haldea said.

The biggest mobilisation was made by the category of All-India financial institutions/banks at Rs 41,922 crore.

This was in comparison to Rs 38,097 crore in the corresponding period of the previous year.

According to Haldea, mobilisation by the private sector witnessed a significant increase; it went up by 32 per cent to Rs 38,108 crore compared to Rs 28,939 crore in the same period previous year. Mobilisation by State Financial Institutions (SFIs) also went up to Rs 1,251 crore, compared to Rs 498 crore in the same period last year.

A fall was witnessed by PSUs, down by 45 per cent to Rs 5,626 crore compared to Rs 10,300 crore in the corresponding period of the previous year. The mobilisation by State Level Undertakings (SLUs) also fell by 17 percent to Rs 933 crore compared to Rs 1,129 crore in the same period of the previous year.

Government organisations and financial institutions mobilised 57 per cent of the total amount, down from 63 percent in the corresponding period of the previous year.

As per Prime, among government organisations, All-India Financial Institutions/Banks led with a 48 percent share, followed by a 6 per cent share by PSUs and 1 per cent share each by SLUs and SFIs.

The highest mobilisation through debt private placements during the period was by HDFC (Rs 9,610 crore), followed by PFC (Rs 9,434 crore), LIC Housing (Rs 6,912 crore) and REC (Rs 6,800 crore).

Industry-wise, the financial services sector continued to dominate the market, collectively raising Rs 60,446 crore or 69 percent of the total amount. Power ranked second with a 7 per cent share (Rs 6,569 crore), the release said.

Published on September 04, 2013
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