Rs 73,000 cr raised via debt, equity in H1

Indian corporates and financial intermediaries have raised well in excess of Rs 73,000 crore in the first half(H1) of calendar year 2005 through debt and equity issuances. Most corporates preferred the domestic debt market to the equity market as about Rs 46,000 crore was mopped up through debt issues as opposed to Rs 27,000 crore via equities.

Domestic bond issues in January to June 2005 were up 32 per cent at Rs 26,000 crore. This was higher than Rs 19,600 crore raised during the same period last calendar year through the debt market.

Food Corporation of India raised the maximum through debt at Rs 5,000 crore. HDFC was a close number 2 as it mopped up Rs 4,230 crore, followed by National Bank for Agriculture and Rural Development at Rs 3,292 crore.

Among banks, ICICI Bank raised the maximum of Rs 1,025 crore, followed by Citigroup's Rs 550 crore and Exim Bank's Rs 785 crore, as per the data released by Bloomberg.

The first half of 2005 saw a lot of overseas equity issues from India. A total of $2.68 billion was raised through nine issues, including $300 million American depository receipts (ADR) issue by HDFC Bank and $100 million GDR issue by Bharat Forge.

The latter, the world's second largest auto components manufacturer, raised funds for acquisitions overseas and for expansion in India. In the corresponding period last year, except for Crest Animation Studios' $5.81 million ADR, India Inc stayed away from the overseas equity markets.

In contrast, many corporates preferred to raise equity funds from the home market last year. They raised Rs 22,145 crore through domestic public issues of equity shares. This was higher than Rs 16,047 crore raised in the first half of 2005.

Meanwhile, corporates and banks have also raised funds through syndicated loans and foreign currency convertible bonds (FCCBs) as well as plain debentures amounting to $4.57 billion during the period January-June 2005.

Banks and financial institutions accounted for 15 of the 21 overseas debt issues in the first half of the year. The total amount raised through syndicated loans was $2.86 billion. State Bank of India (SBI) raised $350 million through syndicated loans, ICICI Bank $250 million, HDFC $113.90 million and GE Capital International Services $180 million.

Reliance Industries raised the highest amount of $700 million in two equal tranches. Other corporates to raise overseas loans include Gateway Terminals' $164 million, Bharti Cellular's $100 million and Essar Steel's $25 million.