Indian cos raise Rs 64,250 cr in debt; 29% up from last year

India companies raised a whopping Rs 64,250 crore through private placement of debt securities or bonds in April-June quarter, a sharp increase of 29 percent compared to the year-ago period, according to a report.

“On a period-on-period basis, the April-June period’s raising of Rs 64,250 crore was an increase of 29 percent over Rs 49,859 crore mobilised in the corresponding period of the previous year,” according to figures compiled by Prime Database.

The funds raised during the June quarter was mobilised by a total of 86 institutions and corporates. In debt private placements, the companies issue debt securities or bonds to institutional investors.

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As per the report, the biggest mobilisation came from all-India financial institutions or banks at Rs 32,980 crore in the first quarter of current fiscal (2012-13). This was in comparison to Rs 35,299 crore in the same period of previous year.

The sector that witnessed the most significant growth during the quarter was the private sector, whose mobilisation surged by 135 percent to Rs 22,156 crore, the report said.

At the same time, funds raised by PSUs went up to Rs 7,323 crore against to Rs 4,469 crore in the same period last year.

In addition, funds raked in by State Level Undertakings (SLUs) grew to Rs 1,295 crore in the first quarter of current fiscal (2012-13) compared to Rs 671 crore in the year-ago period. The government organisations and financial institutions together accounted for 66 percent of total funds raised during the quarter under review, down from 81 percent during the same period a year ago.

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In terms of sectors, financial services segment dominated the market with a 65 percent share of total funds, followed by power sector with 9 percent share. The highest mobilisation through debt private placements during the period was by PFC (Rs 8,398 crore), followed by HDFC (Rs 4,790 crore), Hindalco (Rs 4,500 crore) and NABARD (Rs 4,379 crore).

PTI