Corporates and domestic financial institutions (FIs) have
mobilised Rs 22,577 crore through private placement of
debt during the first half of this financial year. The
fund mobilisation through this route was 14 per cent lower
than the correspondent period last year, which stood at
Rs 26,309 crore.
to the data available from Prime Database, India's premier
database on debt private placements, the Rs 22,577 crore
was mobilised by 99 institutions and corporates. It may
be mentioned that full 2001-02 and 2002-03 had witnessed
mobilisation of Rs 45,427 crore and Rs 48424 crore, respectively.
new Securities and Exchange Board of India guidelines
issued in September on corporate bonds had an immediate
impact on resource raising, as per Prime. From figures
of Rs 5,944 crore in June, Rs 4,362 crore in July and
Rs 5,531 crore in August, the mobilisation declined to
only Rs 2,923 crore in September, most of which was also
prior to the issuance of the guidelines. The fall in subsequent
months is feared to be even greater.
to Prime, compared to the same period in the previous
year, the present half witnessed a huge 67-per cent increase
in mobilisation by the all-India FIs and banks, up from
Rs 6,829 crore to Rs 11,389 crore. Leading the pack of
mobilisers in this category was IDBI (Rs 2,127 crore),
followed by Nabard (1,575), Hudco (1,371) and IRFC (1330).
decline in mobilisation came in all other sectors as per
Prime. State-level undertakings (SLUs) recorded a 29-per
cent fall to Rs 1,369 crore compared to Rs 1,936 crore
in the corresponding period of the previous year. Most
of the funds raised by SLUs continued to be for the infrastructure
sector, mainly power, roads and water resources. The leader
in this category was TNEB (Rs 614 crore) followed by Cauvery
Neeravari (250), Rajasthan Rajya Vidyut Prasaran (120)
and KHJNL (110).
decline was also recorded, according to Prime, in the
mobilisation by the private sector. The attractive interest
rates in the ECB market were the major reason for this
fall. The share of this sector at Rs 3,973 crore was 29
per cent lower compared to Rs 5,611 crore in the same
period in the previous year.
most of the private sector debt was of AAA-category and
was raised for retirement of either old expensive debt
or for acquisitions. Leading the mobilisers in this sector
was BSES (Rs 375 crore), followed by Associates India
(325), Citicorp Finance (300) and Sterlite Opportunities
biggest decline, as per Prime, came in the raisings by
PSUs at 68 per cent. While the previous year's corresponding
period had seen a mobilisation of Rs 10,420 crore, only
Rs 3,295 crore was raised in the current period. Major
mobilisers were Power Grid (Rs 699 crore), Nuclear Power
(689) and NTPC (600). Government organisations and FIs,
put together, increased their domination, mobilising a
high 82 per cent of the total amount, up from 79 per cent
in the previous year and 68 per cent in 2001-02.
government organisations, all-India FIs and banks led
with a 50-per cent share, followed by a 15-per cent share
by public sector units, an 11-per cent share by state
FIs and a 6-per cent share by SLUs. The highest mobilisation
through debt private placements during the period was
by IDBI (Rs 2,127 crore), followed by Nabard (1,575),
Hudco (1,371), IRFC (1,330), APPFC (1136), PGCI (699)
and NPCI (689).
an industry-wise basis, the financial services sector
continued to dominate the market, collectively raising
Rs 16,339 crore or 73 per cent of the total amount. Power
ranked second with a 14-per cent share (Rs 3,192 crore),
followed by transportation (570).
to Prime, in addition to the above one-year tenor mobilisation
of Rs 22,577 crore, a significant additional amount of
Rs 5,375 crore was raised through 236 deals of less than
one year tenor debentures by 48 issuers. Moreover, an
amount of Rs 4,157 crore in 44 deals was raised through
pass-through certificates (securitised paper).