Firms raise Rs 1.40 lakh in pvt placements

 The domestic financial sector in the first half of the current fiscal consisting of 138 institutions and corporates mopped up Rs 1,40,672 crore through debt (bonds) on private placement basis.

Only such deals which have a tenor and put/call option of above 365 days are reflected during April-September 2012, as reported by PRIME Database which operates the country’s premier and only database on debt private placements.

On a period-on-period basis, the April-September period witnessed the raising of Rs 1,40,072 crore, which was an increase of 21 per cent over Rs 1,15,536 crore mobilised in the corresponding period of the previous fiscal, said PRIME Chairman and Managing Director Prithvi Haldea in a statment.

As per PRIME, the biggest mobilisation was again made by the category of all-India financial institutions/banks at Rs 78,669 crore, an increase of 7 per cent as compared with Rs 73,751 crore in the corresponding period of the previous year.

Further, Haldea points out that mobilisation of the private sector witnessed a significant increase as it went up by 78 per cent to Rs 45,303 crore as compared to Rs 25,494 crore in the corresponding period of the previous year. (See chart)

The mobilisation by the State Financial Institutions (SFIs) also went up to Rs 1,058 crore compared to Rs 65 crore in the same period last year while the funds raised by State Level Undertakings (SLUs) also went up to Rs 4,660 crore compared to Rs 1,997 crore.

But, mobilisation by PSUs went down to Rs 10,383 crore compared to Rs 14,230 crore in the same period last year.

The government organisations and financial institutions, put together, mobilised 68 per cent of the total amount, down from 78 per cent in the corresponding period of the previous year.

As per PRIME, among government organisations, all-India financial institutions/banks led with a 56 per cent share, followed by a 7 per cent by PSUs, 3 per cent by SLUs and 1 by SFIs.

The highest mobilisation through debt private placements during the period was by HDFC (Rs 15,955 crore), followed by PFC (Rs 12,498 crore), NABARD (Rs 9,079 crore), IDFC (Rs 8,907 crore), LIC Housing (Rs 8,496 crore), REC (Rs 7,198), Hindalco (Rs 6,000 crore) and EXIM Bank (Rs 5,548 crore).

According to Haldea, on an industry-wise basis, the financial services sector, continued to dominate the market, collectively raising Rs 97,974 crore or 70 per cent of the total amount. Power ranked second with a 6 per cent share (Rs 8,043 crore).