Private placement fund-raising up 39%

The amount of money raised through private placement, a route of fund raising from a limited number of participants and not available to the public at large, has jumped 39% in the financial year ending March 2013.

The money raised through the route was at Rs 3.51 lakh crore in FY13 as opposed to 2.52 lakh crore in FY12, according to a press statement from data provider Prime Database.

Pranav Haldea, Director of Prime Database noted that private companies have increased their share of the private placement pie moving up from less than a quarter to almost a third of the total funds raised through the route.

“…mobilisation by the private sector witnessed a significant increase; it went up by 93% to Rs 1,13,737 crore compared to Rs 59,062 crore in the previous year,” he noted in the press release.

The rest of the money was raised by government entities.

“Government organisations and financial institutions, put together, mobilised 68% of the total amount, down from 77% in the previous year,” said the statement from Prime.

The financial services sector dominated the fund-raising, accounting for Rs 2.44 lakh crore or 70% of the total funds raised.  Power was next in line, having raised Rs 21,408 crore.