Rs 56,169 cr mopped-up via debt private placements in Q1: Prime

India Inc mopped-up a whopping Rs 56,169 crore through debt on a private placement basis during the first quarter of current fiscal, recording a growth of 31 per cent compared to the same period a year earlier.

The April-June quarter of the current fiscal witnessed a mobilisation through debt (bonds) on private placement basis of Rs 56,169 crore, up 31 per cent, as against Rs 42,715 crore mobilised in the corresponding period of the previous year, as per a report released by Prime Database today.

The fund raised during the June quarter was mobilised by a handful of 79 institutions and corporates. Only such deals which have a tenor and put/call option of more than one year are reflected in this database.

The sector that witnessed the most significant growth was the public sector undertakings (PSUs), whose mobilisation went up by 114 per cent from Rs 2,910 crore to Rs 6,235 crore, Prime Database CMD Prithvi Haldea said in a statement.

According to the report, the biggest mobilisation came from all-India financial institutions/banks who recorded a 48 per cent increase to Rs 33,520 crore, compared to Rs 22,650 crore in the corresponding period of the previous year.

The highest mobilisation through debt private placements during the period was by PFC (Rs 6,678 crore), followed by IDFC (Rs 4,420 crore), HDFC (Rs 3,850 crore), IRFC (Rs 3,455 crore), PGCIL (Rs 2,880 crore) and LIC Housing (Rs 2,202 crore).

"On an industry-wise basis, the financial services sector, continued to dominate the market, collectively raising Rs 40,605 crore or 73 per cent of the total amount. Power ranked second with an 10 per cent share (Rs 5,825 crore)," Haldea said.

A fall, though marginal, in mobilisation came from private sector, down to Rs 16,265 crore, compared to Rs 16,961 crore in the corresponding period of the previous year, he added.

India Inc had raised Rs 1.89 lakh crore through corporate bonds on private placement basis in last fiscal, an increase of 9 per cent over the previous financial year.