India Inc mops up $10B
Facebook Twitter google+ RSS Feed

India Inc mops up $10B

By agencies   |   Tuesday, 18 July 2006, 07:00 Hrs
Printer Print Email Email
NEW DELHI: India Inc's money raising spree continues unabated as GDP continues to grow at 7 percent plus rates and capital investment activity booms, a business newspaper reported.

Indian companies raised nearly $10 billion in the first quarter of 2006-07, as against nearly $40 billion raised by way of equity and debt from both domestic and overseas markets in fiscal 2005-06, according to Bloomberg data. This comes at a time, when there has been a net FII outflow of $1.1 billion in the secondary market, the Financial Express reported.

As against last year, the debt component has become larger inspite of the interest rate hikes. Debt and hybrid instruments accounted for 72 percent of all capital raised in the quarter ending June 2006 as against 68 percent a year ago, the paper said.

However, the foreign component has come down drastically from 60 percent a year ago to 48 percent in Q1 this fiscal.

This is primarily due to $1.8 billion initial public offering of Reliance Petroleum Ltd that skewed the figures towards domestic sources. But for that issue, money raised by means of IPOs would have fallen 55 percent, the paper reported.

Howewer, the softening equity markets took their toll on depository receipts and FCCBs. Depository receipts were the only category to witness a decline, falling 72 percent to $434 million as against $1.55 billion in Q1 2005-06.

Although money raised via FCCBs witnessed an 88 percent increase to $1.38 billion, no new issue has taken place since the markets tanked in mid-may. With premium dipping to the levels of 10-20 percent as against 30-40 percent a year ago, a host of players like Jet Airways, Marksons Pharma, Triveni Engineering and Reliance Natural Resources deffered their FCCB issues, Financial Express added.

Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Philips
Sr. Executive
ISB
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
NIC
Reena Khanna
Founder
Solitaireworld
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset
SPOTLIGHT