Corporate debt falls in March *By fe Bureau*
For the financial year ended March 2009, total flotations stood at Rs 1 lakh crore, depicting a 52.4% decline over the previous year, showed the Centre for Monitoring Indian Economy (CMIE) report for April 2009. Once again money raised through the domestic issuance of debt and equity out weighted money collected from overseas flotations. Corporate debt flotations fell by a substantial 43.7% to Rs 4,160 crore in March 2009 compared to the previous month. The number of issues also fell drastically to six during the month. However, the interest rates remained strong in the range of 8.85%-12.5% during the month. During the month, the highest amount was raised by Power Grid Corporation of India. The company raised the money at an interest rate of 9.2% for a tenure of 16 years. HDFC Bank raised Rs 797 crore by way of private placement of its unsecured, non-convertible redeemable subordinated bonds in the nature of debentures towards tier II capital. While an interest rate of 9.85% would be paid for the first 10 years, a step-up coupon rate of 10.35% would be paid for the last five years if the call option is not exercised at the end of 10 years from the date of allotment. West Coast Paper Mills raised Rs 65 crore at a coupon rate of 12.5%, the highest rate of interest paid during the month. At the same time, money being raised from the primary markets has also been gradually falling since the dawn of 2009. While January and February 2009 witnessed a month-on-month slide of 22.7% and 41.3% in capital raised, March 2009 witnessed a decline of 35.3% to Rs 4,842.8 crore. Once, again the entire sum was mopped up entirely from the domestic market, showed the report. While no company went in for a public issue of shares or debt, four companies raised Rs 633.7 crore through the issue of right shares. These were Money Matters Financial Services (Rs 18 crore), Chemplast Sanmar (Rs 159.9 crore), Gangotri Iron and Steel (Rs 6.2 crore) and Alok Industries (Rs 449.6 crore). However, the bulk of the money raised from the primary market was through the private placement of debt and equity. Among the companies tapping the private placement of equity to raise funds, West Coast Paper Mills raised the highest amount of Rs 13.5 crore during the month, followed by Fresenius Kabi Oncology which raised Rs 7.1 crore. The private placement of debt mopped up Rs 4,159.5 crore in March 2009, the highest amount being raised by Power Grid Corporation of India for Rs 1,297.5 crore and Bank of Baroda for Rs 1,000 crore. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
