KOLKATA: Debt mobilisation through corporate bonds on private placement basis fell by 55 % to Rs 43,147 crore in the first quarter of the financial year 2014-15 from Rs 96,186 crore in the corresponding period previous year, the country’s premier database on primary capital market Prime stated on Monday.
Prime managing director Pranav Haldea attributed the drop in mobilization to lower raisings by financial institutions and banks. The amount was mobilised by 81 institutions and corporates and includes only deals which have a tenor and put/call option of above 365 days.
On an industry-wise basis, financial services sector continued to dominate the market, raising Rs 26,407 crore collectively or 62 % of the total amount, followed by the real estate sector with a 9 % share (Rs 4,056 crore).
According to the Prime study, mobilisation by private sector at Rs 28,991 crore was highest in the quarter under review. The mop up was, however, down by 24 % compared to Rs 38,161 crore in Q1 FY14. Mobilisation by all-India financial institutions, banks also dipped by 72 % to Rs 13,058 crore from Rs 47,272 crore in the corresponding period of the previous year. That by state financial institutions fell by 92 % to Rs 98 crore in the said quarter from Rs 1,251 crore in the year-ago period, while that by PSUs was nil compared to Rs 8,568 crore in the corresponding period previous year.
The highest mobilisation through debt private placements during the period was by HDFC (Rs 4,450 crore) followed by EXIM Bank (Rs 3,018 crore), IOT Utkal (Rs 3,000 crore), IDFC (Rs 2,730 crore), and Reliance Jio (Rs 2,500 crore).
Government organisations and financial institutions collectively mobilised 15 % of the total amount, less than 47 % in the corresponding previous period. As per PRIME, among government organisations, all-India financial institutions and banks led with 84 % share, followed by state level undertakings with 15 % share and state financial institutions with 1 % share.