Funds raised from private debt issues drop 23% to Rs 2.7 lakh cr

Equities take shine out of debt placements; PFC, HDFC among biggest fund raisers

Indian companies mopped up Rs 2.71 lakh crore through private issue of debt securities in 2013-14, a 23 per cent drop from the preceding year.

"On a year-on-year basis, last fiscal year's raising of Rs 2.71 lakh crore was a decrease of 23 per cent from Rs 3.52 lakh crore mobilised in 2012-13," according to a report by Prime Database.

Market analysts say fund raising through private debt placement -- where firms issue debt securities or bonds to institutional investors to raise capital -- has been subdued lately due to the good performance of equities.

The biggest mobilisation was by financial institutions and banks at Rs 1.45 lakh crore in 2013-14, a plunge of 21 per cent from the preceding year.

Mobilisation by private sector firms fell 21 per cent to Rs 89,603 crore, while funds raised by public sector companies declined to Rs 31,248 crore from Rs 39,551 crore.

Mobilisation by state-run financial institutions went down to Rs 1,482 crore from Rs 5,394 crore previously, while funds raised by state-level undertakings nosedived 57 per cent to Rs 3,686 crore.

"Government organisations and financial institutions put together mobilised 53 per cent of the total amount, higher than 49 per cent in 2012-13," according to the report.

The highest mobilisation through private debt placements was by Power Finance Corp (Rs 24,698 crore) followed by HDFC (Rs 24,269 crore), Rural Electrification Corp (Rs 24,253 crore), LIC Housing Finance (Rs 20,850 crore) and Exim Bank (Rs 10,461 crore).