Teleservices, Citifinancials and Tata Power are among
the large corporate borrowers from the debt private placement
market in the first six months of this financial year.
Tata Teleservices was the biggest mobiliser of debt with
the company raising Rs970 crore, followed by Citifinancial
mopping up Rs900 crore. Tata Power mobilised Rs600 crore
and M&M Financial raised Rs525 crore through private
placement of debt securities.
private sector borrowing from private placement market
increased in the first half of FY05. According to Prime
Database, the mobilisation by the private sector surged
55 per cent from Rs4,613 crore to Rs7,144 crore in the
same period in the previous year.
most of the private sector debt was of AAA category and
was from finance companies. The first six month of the
current fiscal witnessed a mobilisation through debt (bonds)
on private placement basis of Rs21,202 crore, mobilised
by 69 institutions and corporates. The April-September
mobilisation of Rs21,202 crore, witnessed a decline of
15 per cent over Rs25,025 crore mobilised in the corresponding
period of the previous year.
years 2001-02, 2002-03 and 2003-04 had witnessed mobilisation
of Rs45,427 crore, Rs48,424 crore and Rs48,428 crore respectively.
The reason for the fall in private placement of debt in
this fiscal is due to lower borrowing by financial institutions
by FIs and banks was down by 28 per cent from Rs14,116
crore to Rs10,176 crore. Leading the pack in this sector
were IDBI which raised Rs3,493 crore, followed by HDFC
(Rs650 crore) and NABARD (Rs1,000 crore).
was also a sharp decline in borrowing by public sector
companies. PSU mobilisation was down by 49 per cent from
Rs2,618 crore in the last year to only Rs1,354 crore was
in the current period. Major mobiliser was Konkan Railway
which raised Rs588 crore.
state level undertakings recorded a 21 per cent increase
in borrowing through private placement to Rs2,453 crore
compared to Rs2,032 crore in the corresponding period
of the previous year.
of the funds raised by state level undertakings (SLUs)
continued to be for the infrastructure sector, mainly
power, roads and water resources. The leader in this category
was (APPGC) Andhra Pradesh Power Generation Corporation
Ltd (Rs590 crore) followed by (SSNNL) Sardar Sarovar Narmada
Nigam Limited (Rs550 crore).
organisations and financial institutions put together,
a fall in their domination, mobilising only 66 per cent
of the total amount, down from 82 per cent in the previous
year's corresponding period.