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Journalism of Courage
MUMBAI, FEB 2: Private sector companies have overtaken their counterparts in the public sector in mobilisation through private placement of debt (corporate bonds). In fiscal 1999-00, 113 corporates raised a high Rs 12,595 crore, taking the share up to 23%. In the 9-month period ended December 2000, 90 corporates raised Rs 10,117 crore, giving it a 26% share.
On the other hand, the mobilisation by the state level undertakings, according to Prime Database, recorded a fall. In the recently concluded 9-month period, the share of SLUs went down to 21% with a mobilisation of Rs 8,197 crore. From a meagre Rs 311 crore in full 1995-1996, the mobilisation has seen a consistent rise to Rs 2,630 crore in 1996-1997, Rs 6,726 crore in 1997-1998 and on to Rs 9,479 crore in 1998-1999. In fiscal 1999-00, their mobilisation had reached a high Rs 16,780 crore, representing 31% of the total.
“It may be mentioned that most of the funds raised by SLUs have been for the infrastructure sector, mainly power, roads and water resources,†it said. “The recently concluded 9-month period of the current fiscal witnessed a continuing activity in mobilisation through private placement of debt (corporate bonds), with 168 institutions and corporates mobilising an amount of Rs 39,468 crore,†according to Prithvi Haldea of Prime Haldea.
This mobilisation is marginally higher than Rs 38,074 crore which was raised in the corresponding period of the previous year. On an annualised basis, the raising in the 9-month period is, however, marginally lower as the preceding full year had seen a mobilisation of Rs 55,073 crore. Nevertheless, the raisings traditionally increase in the later part of the year and given the issues in pipeline, the current year may touch or even cross the previous year’s mobilisation. In fact, this market has been growing at a rapid pace consistently over the past 5 years.According to PRIME, the fiscals 1995-1996, 1996-1997, 1997-1998 and 1998-99 had witnessed placements of Rs 10,035 crore, Rs 18,391 crore, Rs 30,983 crore and Rs 38,748 crore respectively.
The raisings by PSUs, as per Prime, saw a marginal improvement. While their mobilisation had dropped from Rs 5301 crore in full fiscal 1996-1997 to Rs 4,008 crore in 1997-1998 to Rs 3110 crore in 1998-1999, the previous year had seen it rise to a high Rs 8,436 crore. In the recent 9-month period, an amount of Rs 6161 crore was raised by PSUs, up from Rs 3976 crore in the 6-month period.According to PRIME, there was a comeback in the share of mobilisation by the all-India financial institutions/ banks. In each of the previous four years, their share was the highest; in full 1998-99, for example, 48% of the total funds were raised by these institutions. Their share in 1999-00, however, fell to only 27% and further down to 25% in the first half of the current fiscal. In the 9-month period, the share of financial institutions/ banks rose to 34%.
Government organisations and developmental financial institutions/ banks, put together, nevertheless continued to dominate, mobilising a high 74 per cent of the total amount in private placements. This, however, represented a decline from their 90% share in 1996-97, 75% in 1997-98, 81 per cent in 1998-99 and 77% in 1999-00. Among government organisations, all-Indian financial institutions/ banks led with a 34% share (Rs.13491 crore) followed with a 21% share by state level undertakings (Rs.8197 crore), a 16% share by PSUs (Rs.6161 crore) and a 4% share by state financial institutions (Rs.1502 crore) as per Prime.
