India Inc mobilises Rs 1,92,127 crore through pvt placement of corp bonds

KOLKATA: Corporate bond market is yet to evolve in India with mobilisation through private placement of corporate bonds recording a nominal growth of 1 % in the financial year ended March 31, 2011. India Inc mobilised Rs 1,92,127 crore through private placement of corporate bonds during the year under review compared to Rs 1,89,490 crore mop up the previous year.

Stats available with Delhi-based research firm Prime Database indicate raising by all-India financial institutions and banks grew by 7 % to Rs 1,16,231 crore from Rs 1,08,672 crore. Mop up by the private sector rose by 9 % at Rs 60,039 crore over Rs 55,191 crore, while that by state financial institutions grew by 7 % to Rs 1,425 crore from Rs 1,337 crore the previous year.

Public sector units (PSUs) did not seem to be enthused by corporate bonds. Mobilization by PSUs plunged by 44% year-on-year to Rs 12,450 crore during FY11, and that by state level undertaking declined by 5 % to Rs 1,981 crore. Government organisations and financial institutions collectively witnessed a decrease, mobilising 69% of the total amount in the year, down from 71% the previous year, the report states.

“On an industry-wise basis,” Prime Database chairman & managing director Prithvi Haldea said, “financial services sector continued to dominate the market, raising Rs 1,36,413 crore or 71 % of the total amount. Power ranked second with a 10 % share (Rs 19,025 crore), followed by steel/sponge iron/pig iron (Rs 6,455 crore).”

Only such deals which have a tenor and put/ call option of above 365 days are reflected in this database.