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 per cent. In the 9-month period ended December 2000, 90 corporates raised Rs 10,117 crore, giving it a 26 per cent 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 per cent 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 theinfrastructure 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 amountof 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 theirmobilisation had dropped from Rs 5301 crore in full fiscal 1996-1997 toRs 4,008 crore in 1997-1998 to Rs 3110 crore in 1998-1999, the previous yearhad seen it rise to a high Rs 8,436 crore. In the recent 9-month period, anamount of Rs 6161 crore was raised by PSUs, up from Rs 3976 crore in the6-month period. According to PRIME, there was a comeback in the share of mobilisation by theall-India financial institutions/ banks. In each of the previous four years,their share was the highest; in full 1998-99, for example, 48 per cent ofthe total funds were raised by these institutions. Their share in 1999-00,however, fell to only 27 per cent and further down to 25 per cent in thefirst half of the current fiscal. In the 9-month period, the share offinancial institutions/ banks rose to 34 per cent. Government organisations and developmental financial institutions/ banks,put together, nevertheless continued to dominate, mobilising a high 74 percent of the total amount in private placements. This, however, represented adecline from their 90 per cent share in 1996-97, 75 per cent in 1997-98, 81per cent in 1998-99 and 77 per cent in 1999-00. Among government organisations, all-Indian financial institutions/ banks led with a 34 per cent share (Rs.13491 crore) followed with a 21 per cent share by state level undertakings (Rs.8197 crore), a 16 per cent share by PSUs (Rs.6161 crore) and a 4 per cent share by state financial institutions (Rs.1502 crore) as per Prime. The highest mobilisation through debt private placements during the periodwas by ICICI (Rs 2946 crore), followed by SBI (2500), GE Capital (1435), PFC(1426), Reliance (1383), IDBI (1260), REC (1149), IFCI (1022), GEB (1000),HPCL (1000), HUDCO (889), Nirma (870), APPFC (863), Konkan Railway (693) andHDFC (650). The single largest placement of the period was made by State Bank of India in December aggregating Rs 2500 crore.
