India Inc raises Rs 1.74 lakh cr via corporate bonds in FY09

India Inc has raised over Rs 1.74 lakh crore through issue of corporate bonds on private placement basis in the fiscal 2008-09, driven by huge mobilisation by the private sector firms, a report says.     

According to data complied by capital market data provider Prime, the funds raised have increased substantially to Rs 1,74,327 crore last fiscal from Rs 1,15,423 crore in FY 2007-08, a jump of over 51 per cent.     

The major reason for the substantial increase in fund raising through corporate bonds was due to the significant growth in the raising by the private sector, whose mobilisation went up by 152 per cent to Rs 54,634 crore in FY09 from Rs 21,691 crore in the previous fiscal.

The other sector which continued to witness large mobilisation was financial institutions and banks, with their mobilisation going up by 18 per cent to Rs 1,02,886 crore from Rs 87,542 crore, the Prime report added.     

"The government organisations and financial institutions, put together, witnessed a decline, mobilising 69 per cent of the total amount in the year, down from 81 per cent in the previous year," it elaborated.     

On an industry-wise basis, the financial services sector continued to dominate the market, mopping up Rs 1,23,251 crore or 71 per cent of the total amount.

Further, the power sector accounted for 7 per cent share (Rs 12,671 crore), followed by diversified (Rs 11,100 crore) in the total funds mobilised.     

The report revealed that the mobilisation by state level undertakings grew by 251 per cent to Rs 4,738 crore from Rs 1,348 crore in the previous year. PSUs saw an increase of 234 per cent to Rs 11,814 crore in 2008-09 from Rs 3,533 crore in the previous year.     

On the other hand, a major fall in mobilisation came from state financial institutions, which saw a drop of 81 per cent to Rs 254 crore in FY09 compared to Rs 1,309 crore in the previous year.