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India Inc up by 50% in '05
By agencies
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Wednesday, 04 January 2006, 20:30 IST
NEW DELHI: India Inc raised a total of $32.14 billion in 2005, up 50 percent over the $21.31 billion raised in 2004. At least $17.8 billion (56 percent) of the money raised last year was foreign money, a newspaper said.
This is excluding another component of foreign money-the FII investment in the domestic market. In the domestic primary and equity market another $14.35 billion, an all time high.
Overall, as GDP increased by 7% plus and capital investment activity boomed in the economy, both domestic and foreign investors bought into the India growth story, the Financial Express said.
Benign interest rates during most of the year saw 80 percent of the amount or nearly $26 billion being raised from the debt market. Domestic corporate debt segment saw $12.2 billion raised in 2005, 57 percent up from the $7.8 billion the previous year.
More impressive was the growth in syndicated loans, which more than doubled to $8.48 billion. In the foreign bonds and convertibles segment there was a decline of 7 percent to $5.23 billion, the paper said.
Surprisingly, the 39 initial public offerings (not counting follow-up issues like that of ICICI Bank) in 2005 raised only $2.15 billion as compared to the $2.75 billion from 12 issues in 2004. However, the previous year's figures included two mammoth offerings from TCS and NTPC, which accounted for more than 80 percent of money raised that year.
There was also a huge increase in depository receipts issued by Indian companies in 2005. $4.08 billion from 22 issues was raised - as opposed to $1.05 billion raised from 3 issues in 2004, the paper said.