1995-96 Saw Rising Debt Pvt Placement

Fiscal 1995-96 witnessed the rise of debt private placement. A total of 47 institutional and corporate organisations through 73 issues mobilised Rs 9,964 crore by private placement of debt (excluding SLR securities) during the year, states a release on the capital markets from Prime.

The largest mobiliser of the year was Industrial Finance Corporation of India (Rs 1,333 crore) followed by Mahanagar Telephone Nigam (Rs 1,330 crore), ICICI (Rs 1150 crore), Steel Authority of India (Rs 710 crore), SCICI (Rs 633 crore), Industrial Development Bank of India (Rs 579 crore), Bank of Baroda (Rs 500 crore), Power Grid (Rs 277 crore), Hudco (Rs 274 crore) and Indian Railway Finance Corporation (Rs 259 crore).

According to the Prime study, over 96 percent of the total amount was mobilised by government organisations through 56 issues. All-India financial institutions led with a 57 percent share (Rs 5,675 crore) followed by public sector undertakings with a 35 percent share (Rs 3,511 crore).

The state-level undertakings had a 3 percent share (Rs 306 crore) and financial institutions a 1 percent share (Rs 25 crore).

The private sector's mobilisation was Rs 448 crore.

The study pointed out the financial services sector comprising financial institutions, banks and private sector finance companies dominated the scene cornering Rs 6,007 crore or 57 percent of the total amount.

Telecommunications ranked second with a 13 percent share (Rs 1,330 crore). The other sectors included power (Rs 769 crore), steel (Rs 710 crore), water resources (Rs 427 crore), housing (Rs 274 crore) and transportation (Rs 180 crore).

The study also points out that several innovative instruments were offered like step-up liquid bonds, money back-cum-growth bonds, money multiplier cum bonus bonds and floating rate bonds.