Private sector mobilised over Rs 2.36 lakh cr in FY 2015-16

Companies drum up Rs 4.92 lakh cr through bonds via private placements last year

525 private sector companies have mobilised highest ever Rs 2,36,382 crore in financial year 2015-16 as against Rs 1,91,157 crore in previous year.

According to Prime Database, the recently concluded fiscal witnessed the highest ever mobilisation through corporate bonds on private placement basis of Rs 4,92,047 crore as against Rs 4.32 lakh crore in FY 2015. This was mobilised by 589 institutions and corporates.

Pranav Haldea, managing director of Prime Database said, "On a year-on-year basis, the 2015-16 has recorded 6 per cent rise in mobilization, courtesy higher raisings by the private sector that increased by about 24 per cent."

According to Haldea, fall in mobilization was witnessed by All-India Financial Institutions and banks, down by 15 per cent to Rs 1,99,550 crore compared to Rs 2,34,631 crore in the previous year. Mobilization by State Financial Institutions (SFIs) went down to nil compared to Rs 883 crore in the previous year

Mobilisation by public sector undertakings (PSUs) also went up by 3 per cent to Rs 32,267 crore compared to Rs 31,219 crore in the previous year. Mobilization by State Level Undertakings (SLUs) went up by a huge 205 per cent to Rs 23,848 crore compared to Rs 7,822 crore in the previous year.

Government organizations and financial institutions put together, mobilised 42 per cent of the total amount, less than the 44 per cent in the previous year.

Among government organizations, All-India Financial Institutions and Banks led with a 73 per cent share followed by a 16 per cent share by PSUs and 11 per cent by SLUs. The highest mobilisation through debt private placements during the period was by LIC Housing with Rs 26,412 crore, PFC (Rs 23,587 crore), REC (Rs 22,303 crore), HDFC (Rs 22,276 crore), Nabard (Rs 14,730 crore) and (SBI Rs 10,500 crore).

Haldea said, "On an industry-wise basis, the financial services sector continued to dominate the market, collectively raising Rs 318,482 crore or 64 per cent of the total amount. Power sector ranked second with a 12 per cent share that was Rs 58,499 crore."