Fund mop-up via debt placement rises 40% to Rs 2.67 lakh crore

NEW DELHI: Driven by higher fund mobilisation by PFC and REC, capital raised by Indian companies through corporate bonds on private placement basis surged by 40 per cent to Rs 2.67 lakh crore in the first nine months of the current fiscal.

According to Prime Database, firms raised Rs 2,67,621 crore during April-December period of 2014-15, higher than Rs 1,91,119 crore mobilised in the corresponding period of the previous year.

The increase in fund mobilisation is mainly due to higher raising by financial institutions or banks, Prime Database Managing Director Pranav Haldea said.

In terms of industry, financial services sector continued to dominate the market, collectively raising Rs 1.92 lakh crore or 72 per cent of the total amount. Power sector ranked second with a 10 per cent share (Rs 25,424 crore).

The report said funds garnered by private sector went up by 65 per cent to Rs 1.1 lakh crore, followed by PSUs (up 26 per cent to Rs 20,191 crore) and State Level Undertakings (up 47 per cent to Rs 4,134 crore).

The highest mobilisation through debt private placements during the period was by PFC (Rs 26,050 crore), followed by REC (Rs 21,965 crore), HDFC (Rs 18,495 crore), LIC Housing (Rs 16,907 crore) and EXIM Bank (Rs 9,768 crore).

Among others that raked in funds through corporate bonds on private placement basis are IDFC (Rs 8,679 crore), PGCIL (Rs 7,002 crore), Indiabulls Housing (Rs 5,708 crore), Axis Bank (Rs 5,705 crore) and Shriram Transport (Rs 5,019 crore).