Corporate India's capital raising through debt fund route declined marginally to Rs 55,510 crore in the first half of this financial year largely because there were less mobilisations by financial institutions, says a report.
"The first half of the current fiscal witnessed a mobilisation through debt (bonds) on private placement basis of Rs 55,510 crore, though mobilised by a handful of only 72 institutions and corporates," Prime Database said in its report.
On a period-on-period basis, the April-September period's raising of Rs 55,510 crore, meant a marginal decline of only 3 per cent over Rs 56,945 crore mobilised in the same period of the previous year.
All-India financial institutions or banks recorded an 18 per cent decrease to Rs 35,896 crore compared to Rs 43,566 crore in the same period of the previous year, it said.
Besides, a fall in mobilisation also came from state financial institutions, down by 57 per cent to Rs 30 crore compared to Rs 70 crore in the corresponding period of the previous year, the report added.
An industry-wise analysis shows that the financial services sector, dominated the market as it collectively raised Rs 45,089 crore, or 81 per cent of the total amount, while steel tubes which has the second highest market share was away behind with only four per cent share as it raised Rs 2,000 crore.
Though there was a decline on an year-on-year basis, the report further added mobilisation by private companies went up by 37 per cent from Rs 12,689 crore to Rs 17,371 crore.
While, mobilisation by state level undertakings went up by 308 per cent from Rs 150 crore to Rs 613 crore, mobilisation by public sector undertakings rose by 240 per cent from Rs 471 crore to Rs 1,600 crore, the report added.
There was decrease in the degree of domination by government organisations and financial institutions. In the
April-September period this financial year they mobilised 69 per cent of the total amount, a fall of 78 per cent in the previous year's corresponding period.
The highest mobilisation through debt private placements during the period was by PFC (Rs 8,409 crore), followed by REC (Rs 4,474 crore), HDFC (Rs 3,350 crore), LIC Housing (Rs 2,750 crore), IDFC (Rs 2,486 crore), IRFC (Rs 2,324 crore), DSP (Rs 2,055 crore), IDBI (Rs 2,052 crore ) and Tata Steels (Rs 2,000 crore).
In addition to the Rs 55,510 crore mobilisation, a significant additional amount of Rs 87,534 crore was raised through 911 deals of less than one-year tenor debentures by 59 issuers. Moreover, during this period, an amount of Rs 4,620 crore in 21 deals was raised through pass-through certificates.