India tops list of GDR fund raisers

MUMBAI, July 5: India has topped the list of countries which tapped the overseas depository receipt market so far. As many as 61 companies ...

MUMBAI, July 5: India has topped the list of countries which tapped the overseas depository receipt market so far. As many as 61 companies have raised $ 6.22 billion from the global markets so far, accounting for 21.90 per cent of the money raised through the depository receipt route.

According to Skindia Finance, $ 28.41 billion (Rs 10,162.429 crore) has been raised globally by 350 corporates through depository receipts under rule 144 A till 1996. “India has floated the largest number of GDR issues, followed by Mexico with 29 and the United Kingdom with 27,” it said.

The largest number of issues were made by the banking sector with 35, followed by utilities with 32 issues and chemicals with 18. In terms of amount raised, the banking sector tops again raising $ 4,028.42 million, followed by utilities with $ 2,660.56 million and telecom $ 2,620.91 million.

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Many Indian companies, especially public sector companies like IOC, GAIL and MTNL have planned GDR issues. However, no major issue has been launched after the mega issue by VSNL three months ago.

In the meantime, even as the BSE sensex touched a new 52-week high of 4,395.31 (intra-day trading) on July 2, the GDR market did not show the same enthusiasm during the week as the Skindia GDR Index moved in a narrow range. Share price shot up in the domestic market due to frantic buying by foreign funds and cumulative net FIIs inflows crossed the $ 8 billion mark. As a result, 64 GDRs gained an average of 1.07 per cent and their underlying shares 2.74 per cent.

In the last two weeks, the Skindia GDR Index has gained 0.18 per cent as compared to a 5.02 per cent increase in the BSE sensex. This has resulted in the Skindia GDR Index Premium falling to 21.66 per cent from an all-time high of 35.24 (June 13).

The net profit of Tata Electric Companies plunged 48.20 per cent to Rs 229.77 crore in 1996-97. The increased expenditure of Rs 99 crore on account of hike in tariff rates by MSEB resulted in this decline in net profit. On announcement of results, its GDR remained unchanged at $ 4.50 but its underlying shares fell 3.38 per cent to Rs 133. The turnover in the domestic market increased by 22.54 per cent to Rs 3.97 crore.

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BSES has experienced a 22.94 per cent increase in its net profit of Rs 213.30 crore. The news did not have any impact on its GDR which remained unchanged at $ 27.00 while its underlying share fell 0.10 per cent to Rs 238.