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Debt private placements fall by 55%

The amount of money raised through the private placement of debt instruments in the June quarter was less than half the amount raised in the same period last year.

Last year, various private and public entities raised Rs 96,186 crore through the private placement route. This has fallen to Rs  43,147 crore, according to data released by Prime.

Pranav Haldea, Managing Director of PRIME said in the emailed statement that this was largely on account of lower fund raising by financial institutions and banks.

“Mobilisation by the All-India Financial Institutions/ Banks also witnessed a huge decrease; it went down by 72 per cent to Rs.13,058 crore compared to Rs. 47,272 crore in the corresponding period of the previous year. Mobilisation by State Financial Institutions (SFIs) too went down by 92 per cent to only Rs 98 crore compared to Rs 1,251 crore,” it said.

The private sector mobilized Rs.28,991 crore, compared to Rs. 38,161 crore last year. The share of government entities in the private placement pie also saw a dip. They accounted for 15 per cent of the capital raised, compared to less than 47 per cent in the previous year.

The companies who raised the highest amounts included HDFC, Exim Bank and IOT Utkal. They raised Rs 3,000-4,500 crore respectively. IDFC and Reliance Jio also raised Rs 2,730 crore and Rs 2,500 crore respectively.

Public sector undertakings (PSUs) raised Rs. 8,568 crore last year. This year the amount was zero.

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