The total funds mobilised through issue of corporate bonds on private placement basis compared to Rs 81,847 crore in the previous fiscal, data complied by Prime Database shows.
NEW DELHI: India Inc has mobilised a whopping Rs 92,355 crore through issue of corporate bonds in 2006-07, despite a major fall in the funds raised by state-run companies during the period, a latest report says.
The total funds mobilised through issue of corporate bonds on private placement basis compared to Rs 81,847 crore in the previous fiscal, data complied by Prime Database shows.
"The major reason for this substantial increase was the continuing large mobilisation by all-India financial institutions and banks. Their raising went up by 13 per cent from Rs 61,614 crore to Rs 69,693 crore," the report by Prime Database said.
However, a major fall in mobilisation came from Public Sector Units (PSU), which declined by 43 per cent to Rs 6,178 crore from Rs 10,796 crore in the previous year.
Besides, state level undertakings also recorded a fall, down from Rs 889 crore to Rs 752 crore, a 15 per cent decline.
Interestingly, the private sector witnessed a significant growth as the mobilisation through corporate bonds on private placement basis, went up by 83 per cent from Rs 7,944 crore to Rs 14,540 crore.
Government organisations and financial institutions, put together, witnessed a decrease as it mobilised 84 per cent of the total amount, down from 90 per cent in the previous year.
Among government organisations, all-India financial institutions/banks led with a 75 per cent share, followed by a seven per cent share by PSUs, one per cent each by State Financial Institutions and State Level Undertakings, the report said.'
"On an industry-wise basis, the financial services sector continued to dominate the market, raising Rs 82,982 crore or 90 per cent of the total amount. Power ranked second with a seven per cent share (Rs 6,748 crore), followed by roads and highways (Rs 585 crore)," Prime Database CEO Prithvi Haldea said.
The database reflects only such deals which have a tenor and put/call option of more than one year.
In addition to the above one-year tenor mobilisation of Rs 92,355 crore, a significant additional amount of Rs 34,435 crore was raised through 805 deals of bonds, having a tenor of less than one year, by 68 issuers, the report said.
Moreover, an amount of Rs 6,670 crore was raised through pass-through certificates (securitised paper).
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