Prime's Prithvi Haldea said private placement of funds have been growing for the last four fiscals. Funds to the tune of Rs 10,035 crore and Rs 18,391 crore were mobilised during 1995-96 and 1996-97 respectively.

During 1998-99, IDBI raised the highest amount of Rs 5,462 crore followed by ICICI (Rs 3,087 crore), IFCI (Rs 2,922 crore), APSEB (RS 2,019 crore), MKVDC (Rs 1,158 crore), IIBI (RS 997 crore), SAIL (Rs 767 crore), KSEB (Rs 705 crore), GE Capital (Rs 692 crore) and HUDCO (RS 681 crore).

The report stated that the government organisations and development financial institutions continued to dominate, mobilising 81 per cent of the total amount in private placements. This represented an increase from their 75 percent share in 1997-98, though a fall from 90 per cent in 1996-97.

Among government organisations, the all-india financial institutions, including banks, led with a 48 per cent share (Rs 18,604 crore) followed by a 24 per cent share by state level undertakings (Rs 9,479 crore), and an 8 per cent share by PSUs (Rs 3,110 crore) and a 1 per cent share by state financial institutions (Rs 314 crore). According to Haldea, mobilisation by state level undertakings continued to be upbeat, most of which has been for the infrastructure sector (mainly power, roads and water resources).

From a meagre Rs 311 crore raise a high Rs 6,726 crore. In 1998-99, the mobilisation by PSUs jumped to Rs 9,479 crore.

The major issuers were APSEB (Rs 2,019 crore), MKVDC (RS 1,158 crore), KSEB (Rs 705 crore), Maharashtra Jeevan Pradhikaran (RS 675 crore), KBJN (Rs 615 crore), GRID Corporation of Orissa (Rs 558 crore), and MSEB (Rs 500 crore).On the other hand, there was a drop in the mobilisation efforts of PSUs down from Rs 5,301crore in 1996-97 to Rs 4,008 crore in 1997-98 to Rs 3,110 crore in 1998-99.

The period also witnessed, a marginal decline in the mobilisation by the private sector. While Rs 7,763 crore had been raised by 95 companies in 1997-98, the recent year saw 127 companies from this sector raise Rs 7,426 crore.

The financial services sector continued to dominate the market, collectively raising Rs 21,291 crore or 54 per cent of the total amount, the report said. Power ranked second with an 18 per cent share (Rs 7,073 crore), followed by water resources (Rs 2,944 crore), steel (Rs 1,215 crore) and telecommunications (Rs 1,184 crore).

As in the past, private placement market has been restricted to only institutional investors, with hardly any retailing. The placements do not in any way reflect any direct mobilisation of household savings as is in the case of primary capital market, the report added.