After witnessing strong growth for two consecutive years, the Indian primary market witnessed a set back in 2008, as fund mobilisation through debt issues remained subdued for the first time in the last four years, the Economic Survey said.
There was no debt issue in 2008 against a record fund raising of Rs 594 crore through the issue of debt in 2007, according to the Pre-Budget Economic Survey tabled in the Parliament today.
This is the first time in last four years that corporate India failed to raise a single rupee through debt issue. In 2006, a total of Rs 389 crore was raised through these means, whereas in 2005 it was at Rs 66 crore.
In the primary market, resource mobilisation through various means suffered a decline and the dip was the sharpest in case of debt issues.
Besides, all the fund mobilisation mode of primary market like equity, private placement and Euro issues, including American Depository Receipts and Global Depository Receipts, registered significant fall.
"Total amount of capital (raised) through equity issues during 2008 was at Rs 49,485 crore, recording a decline of 15.7 per cent compared to the level in 2007," the survey noted.