In April-December quarter, Debt private placement mobilization fall by 29 percent
In April-December 2013 mobilization through corporate bonds on a private placement basis sinked 29% to Rs 1,81,808 crore, because of lower fund raising by banks and financial institutions.
As per the data base, which evaluates the data on the primary capital market, collection of fund by the private sector also witnessed a sharp decrease. It sinked by 25% to Rs 66,632 crore for the period.
As compared to previous quarter, the State financial institutions (SFIs) were able to collect only Rs 1,251 crore in April-December, a sink of 73 percent noticed in fund collection. Collection of funds by public sector units (PSUs) dropped 43% to Rs 13,069 crore. The State level undertakings (SLUs) also noticed sink in fund collection by jumping to 46 percent to Rs 2,711 Crore.
The Government organizations and financial institutions combined collected the fund, which is 50 percent less than the total amount they collected during the same period of last year. As per Prime, among government organizations, all-India financial institutions/banks lead with 82% share. After them, PSUs which had 14% share, SLUs (3% share) and SFIs (1% share) are in list.
The highest fund collected through debt during that period was by PFC (Rs 18,648 crore), followed by HDFC (Rs 16,675 crore), LIC Housing (Rs 14,170 crore) and REC (Rs 14,113 crore).
As per Pranav Haldea, managing director, the financial services sector continued to influence the market, by collecting Rs 1,33,111 crore or 73% of the total amount.
Source: The Times of India
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