India Inc raised Rs 64,250 crore via debt

With equity markets in doldrums and investor sentiment quite subdued, India Inc was on a debt raising spree in the April-June quarter.

Indian companies mobilised Rs 64,250 crore through bonds on a private placement basis in April-June quarter, an increase of 29 per cent on year over Rs 49,859 crore raised in the corresponding period of the previous year, according to information collated by PRIME Database.

The funds mobilised during the quarter ended June 30 was mobilised by a total of 86 institutions and companies.

A private placement of bond is a method of raising funds in which companies issue bonds to institutional investors.

Government organisations and financial institutions together mobilised 66 per cent of the total amount, down from 81 per cent in the corresponding period of the previous year.

Among government organisations, all-India financial institutions and banks cornered the maximum amount of funds. They together raised Rs 32,980 crore in the first quarter of 2012-13 fiscal.

While mobilisation by the private sector surged by 135 per cent to Rs 22,156 crore compared to Rs  9,417 crore in the same period last year, funds raised by PSUs totalled Rs 7,323 crore compared to Rs 4,469 crore in the same period last year.

Funds raised by state government owned companies nearly doubled to Rs 1,295 crore compared to Rs 671 crore.

The highest mobilisation through debt private placements during the period was by Power Finance Corporation (Rs 8,398 crore), followed by HDFC (Rs 4,790 crore), Hindalco (Rs 4,500 crore) and NABARD (Rs 4,379 crore).

In terms of sectors, financial services segment dominated the market with a 65 per cent share of total funds followed by power sector with 9 per cent share.