MUMBAI, JUNE 23: Debt seems to the preferred route for the resource requirements of the corporate sector. Debt private placements witnessed a 41 per cent rise last fiscal at Rs 54,701 crore over the previous year's figure of Rs 38,748 crore, according to an annual report of Prime Database. As many as 233 institutions and corporates placed private debts during 1999-2000.The highest mobilisation during the year was by the Mahanagar Telephone Nigam Limited, which raised Rs 2,619 crore followed by Maharashtra Krishna valley (Rs 2469), ICICI (1992), IDBI (1930), GE Capital (1927), WBIDFC (1819), IOC (1622), Aptransco (1600), Reliance Industries (1572) and IFCI (1565).On an industry-wise basis, the financial services sector continued to dominate the market, collectively raising Rs 21,331 crore or 39 per cent of the total amount, though its share fell from 54 per cent in 1998-99. Power ranked second with a 15 per cent share (Rs 8441 crore), followed by water resources (4314) and telecom (3264), the report said.A notable development of the year, according to Prime, was the increasing mobilisation by the state level undertakings (SLUs) which gave it the status of the top mobiliser, replacing the all-India financial institutions and banks. From a meagre Rs 311 crore in 1995-96, the mobilisation has seen a consistent rise to Rs 2,630 crore in 1996-97, Rs 6,726 crore in 1997-98 and Rs 9,479 crore in 1998-99. In fiscal 1999-00 their mobilisation reached Rs 16,526 crore, representing a 30 per cent of the total. Most of the funds raised by SLUs have been for the infrastructure sector, mainly power, roads and water resources.The period also witnessed, as per the Prime report a significant increase in the mobilisation by the private sector. While Rs 7,763 crore had been raised by 95 companies in full fiscal 1997-1998, the year 1998-99 had seen 127 companies from this sector raise Rs 7,426 crore. In fiscal 1999-00, 117 corporates raised Rs 12,595 crore.On the other hand, the turnaround in the mobilisation by PSUs continued. While their mobilisation had been dropping from Rs 5,301 crore in full 1996-97 to Rs 4,008 crore in 1997-1998 to Rs 3,110 crore in 1998-99, the recently concluded year, as per Prime, saw it rise to a high Rs 8,436 crore.Most notable, however, has been the dropping down of the all-India financial institutions and banks from their position of top mobiliser. In each of the previous four years, their share was the highest. In 1998-99, for example, 48 per cent of the total funds were raised by these institutions.Their share in 1999-00, however, fell to only 27 per cent. In terms of amount, while the financial institutions/banks had raised Rs 18,604 crore in full 1998-99, their raising was only Rs 14,539 crore in 1999-00.Government organisations and developmental financial institutions and banks, put together, nevertheless continued to dominate, mobilising represented a decline from their 90 per cent share in 1996-97 and 81 per cent in 1998-99.Among the government organisations, state level undertakings led with a 30 per cent share (Rs 16,526 crore) followed with a 27 per cent share by all-India financial institutions (Rs 14539 crore), a 15 per cent share by PSUs (Rs 8436 crore) and a five per cent share by state financial institutions (Rs 2,606 crore).A total of 60 arrangers were associated with the year's placements. Of the total amount of Rs 54,701 crore, a high 96 per cent or Rs 52,324 crore was placed through arrangers according to Prime. This included placement worth Rs 4,807 crore which was handled by the arrangers for their group companies.
