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Corporates' share in private placement debt increases
Our Markets Bureau
New Delhi, Feb 2: As dark clouds loom over the initial public offer market, corporates are increasingly taking the private placement debt route. The share of corporates in the private placement debt market has increased to 26 per cent during the first nine-month of fiscal 2001 against 23 per cent for the full year 1999-2000, according to PRIME, a Delhi-based primary data base.In fact, the waning investor interest in corporate debt vis-a-vis institutional bonds seems to have forced private companies resort to private placements. During the nine-month period, 90 corporates have raised Rs 10,117 crore, which is 26 per cent of the total debt mobilisation of Rs 10,117 crore. In fact, the current trend was visible in fiscal 2000 as the IPO market was dominated by IT and media issues. This had also in a way blocked the entry of manufacturing issues, especially big and large corporates. During the full year 1999-00, 113 corporates raised Rs 12,595 crore, taking the share upto 23 per cent, the PRIME release said. In fiscal 1999, 128 corporates raised only Rs 7,231 crore with a total share of 19 per cent. The total mobilisation in the private placement market for the nine-month period stood at Rs 39,468 crore( Rs 38,074 crore) . Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
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