In Q1FY15 debt private placement by India Inc. falls by 55%
Eighty-one companies in India borrowed Rs 43,147 crore through private placements in the first quarter of FY15. This figure is 55 % less than what they did the corresponding quarter of FY14 (Rs 96,186 crore). PSUs (Public Sector Units) did not borrow through this route at all as against Rs 8,568 crore they did in the same quarter of last year.
Borrowings by banks and financial institutions declined by 72 % from ₹47,272 crore in Q1FY14 to ₹13,058 crore while state financial institutions borrowed ₹98 crore ( ₹1,251 crore in Q1FY14).
Pranav Haldea the Managing Director of PRIME Data base mentioned in a statement that the financial Services sector continued to dominate the market. They collectively raised ₹26,407 crore which is 62 % of the total amount. The Real estate sector ranked second with a 9 % share (₹4,056 crore).
State PSU borrowing however, grew 7 % from ₹933 crore to ₹1,000 crore during the first quarter. HDFC (Rs 4,450 crore), EXIM Bank (Rs 3,018 crore), IOT Utkal (Rs 3,000 crore), IDFC (Rs 2,730 crore), and Reliance Jio (Rs 2,500 crore) were the top five fundraisers through private placements during the quarter.
The private sector was the biggest contributor in Q1FY15 mobilising ₹28,991 crore (₹38,161 crore in Q1FY14) which was a decrease of 24 %.
Source- The Hindu Business Line
EXIM Bank, FY14, HDFC, IDFC, IOT Utkal, Pranav Haldea, PSUs, public sector units, Reliance Jio
