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Record Fund Raising Via Corporate Bonds

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India saw  record fund raising through corporate bonds on private placement basis in 2014-15.
 
According to the information available with PRIME, a database that tracks the money raised by Indian corporate sector and the government through equity, debt and other instruments, 344 institutions and corporates had mobilised  Rs 4,32,692 crore through corporate bonds on private placement basis during the last financial year. On a year-on-year basis, this was a 60 per cent increase over the Rs. 2,70,997 crore mobilised in 2013-14 in the same manner.
 
The increase was primarily driven by the mobilisation of funds made by the financial institutions and banks, which raised Rs. 2,34,213 crore, approximately 60 percent higher than Rs. 1,46,456 crore the sector raised the previous year.
 
According to Sanjeev Khandelwal, Executive Director of PRIME, the mobilisation by the private sector also went up by a huge 82 per cent to Rs. 1,60,319 crore compared to Rs. 88,124 crore in the previous year. Mobilisation by State Level Undertakings (SLUs) went up by 64 per cent to Rs. 6,057 crore compared to Rs. 3,686 crore in the previous year.
 


Government organisations and financial institutions, put together, mobilised 47 per cent of the total amount, less than the 54 per cent in the previous year. As per PRIME, among government organisations, All-India Financial Institutions/Banks led with an 81 per cent share, followed by a 15 per cent share by PSUs, 3 per cent by SLUs and 0 per cent share by SFIs.
 
Mobilisation by Public Sector Undertakings (PSUs) was almost similar at Rs. 31,219 crore compared to Rs 31,248 crore in the previous year. A fall in mobilisation was only witnessed by State Financial Institutions (SFIs), down by 40 per cent to Rs 883 crore compared to Rs 1,482 crore in the previous year.
 
On an industry-wise basis, says Khandelwal, the financial services sector continues to dominate the market, collectively raising Rs 3,19,768 crore or 74 per cent of the total amount.
 
 


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