These funds have been raised mainly for business expansion plans and to meet working capital requirements.
Indian companies raised a staggering Rs 2.04 lakh crore through private placement of corporate bonds in the first six-month of the ongoing fiscal, to meet business needs, a surge of 21 percent from the year-ago period.
These funds have been raised mainly for business expansion plans and to meet working capital requirements. In debt private placements, firms issue securities or bonds to institutional investors to raise capital.
According to Prime Database, firms garnered a total of Rs 2.04 lakh crore during April-September period of the current fiscal, higher than Rs 1.69 lakh crore mobilised in the first half of 2014-15. Financial institutions/banks contributed to most of the fund raising, Prime Database Managing Director Pranav Haldea said.
Financial Services sector continued to dominate the market, collectively raising Rs 1.4 lakh crore or 68 percent of the total amount.
This was followed by power sector with a fund mop-up of Rs 17,962 crore. The highest fund mobilisation through private placement of debt during the period was by Power Finance Corp (Rs 19,312 crore), LIC Housing (Rs 10,768 crore), HDFC (Rs 9,701 crore), Rural Electrification Corp (Rs 8,121 crore) and IDFC (Rs 7,042 crore).
Power Finance stock price
On November 23, 2015, at 15:12 hrs Power Finance Corporation was quoting at Rs 209.20, down Rs 4.05, or 1.9 percent. The 52-week high of the share was Rs 315.90 and the 52-week low was Rs 185.40.
The company’s trailing 12-month (TTM) EPS was at Rs 48.29 per share as per the quarter ended September 2015. The stock’s price-to-earnings (P/E) ratio was 4.33. The latest book value of the company is Rs 244.08 per share. At current value, the price-to-book value of the company is 0.86.