Cos raise Rs 26,719 cr via debt instruments

MUMBAI, MARCH 3: The Indian capital market has become debt-dominated with institutions and corporates raising Rs 26,719 crore in the firs...

MUMBAI, MARCH 3: The Indian capital market has become debt-dominated with institutions and corporates raising Rs 26,719 crore in the first nine months of this fiscal, a six per cent growth over the same period of the last year.

Almost the entire public issue mobilisation has been through debt offerings, Prime Database said and added that first nine months witnessed a booming activity in the private placement of debt. During the first nine months of last financial year, a total of Rs 25,127 crore was mobilised through debt instruments, it said.

During the full fiscals of 1995-96, 1996-97 and 1997-98, debt mobilisations amounted to Rs 10,035 crore, Rs 18,391 crore and Rs 30,983 crore respectively, the Prime report said.

According to it, the highest mobilisation through debt private placement during the nine month period was by Industrial Development Bank of India (IDBI) which tapped Rs 5446 crore. Other institutions which mopped up a major chunk during the period was IFCI (Rs 2848 crore), ICICI (Rs 2677crore), MKVDC (Rs 760 crore), Reliance Industries (Rs 675 crore), Hudco (Rs 648 crore), KBJNL (Rs 615 crore), Sail (Rs 570 crore), APSEB (Rs 519 crore), MJP (Rs 513 crore) and Rs 500 crore each by MSEB, IDFC, Exim Bank and Reliance Telecom.

As per the Prime report, government organisations and development financial institutions continued to dominate the debt offerings constituting 81 per cent of the total amount mobilised, an increase from 75 per cent share during the previous fiscal. Government organisations and DFIs, however, had a 90 per cent mobilisation share during 1997-98, Prime pointed out.

Among the government organisations, the all-India financial institutions and banks led with a 55 per cent share of the total mobilisations during this fiscal at Rs 14,592 crore. State level undertakings had a 20 per cent share of the total mobilisations at Rs 5443 crore, five per cent share by PSUs at Rs 1403 crore and a one per cent share by state financial institutions at Rs 150 crore, Prime said.