Funds mop-up via debt placements reach Rs 1.64 lakh cr

Indian companies have raised Rs 1.64 lakh crore through private placement of debt securities or bonds in the first nine months of the current fiscal, primarily led by financial institutions, a report said on Tuesday. This marks an increase of five per cent in the total size of such funds from the levels seen in the year-ago period. In debt private placements, the companies issue debt securities or bonds to institutional investors. RELATED STORIES January IIP: Expert Views Air India mulling to import jet fuel directly Profit Top 10: Reserve Bank cuts cash reserve ratio by 0.75%; MCX listing a big hit Sensex seen opening higher, MCX to debut Tips for Trade: Market to remain volatile ahead of Budget, stick to banks According to the data compiled by Prime Database, Indian firms mopped-up Rs 1,64,444 crore through 125 debt private placements during April-December period of current fiscal, as against Rs 1, 56, 856 crore mobilized in the year-ago period. The funds raised by all-India financial institutions and banks grew by 17 per cent to Rs 1, 09, 778 crore in the nine months of the fiscal year 2011-12. At the same time, the funds raised by the private sector fell by 27 per cent to Rs 35,422 crore in this period. Prime Database's Prithvi Haldea said that the fund mobilization by PSUs, however, rose by 33 per cent to Rs 15,768 crore in the first nine months of current fiscal. The funds raised by state-level undertakings was lower, although. All the government organizations and financial institutions together have accounted for 78 per cent of total funds raised during this year, up from 69 per cent a year ago. In terms of sectors, financial services segment dominated the market with a 80 per cent share of total funds, followed by power sector with 7 per cent share. The highest mobilization through debt private placements during the period was by PFC (Rs 21,563 crore), followed by HDFC (17,285 crore), REC (15,966 crore), NABARD (10,324 crore), IDFC (7,751 crore), LIC Housing (7,235 crore) PGCIL (7,043 crore) and Air India (5,500 crore).