INSTRUMENT-WISE ANALYSIS OF CAPITAL RAISED
Instrument-wise analysis reflects investors’ preference for various types of instruments available in the primary market.
In the year 1996-97, the companies accumulated funds of Rs.7,844.44 crore by way of equity issue.
However, in the later years, the importance of equity issue has declined sharply and is substituted through debt finance, probably encouraged by the comparative cost advantage.
This analysis clearly suggests an ongoing structural change in the corporate financing.
This can be noticed nom the Table 4. Meanwhile, the bonds too contributed a major share of 44.4 percent during 2000-01 as against 41 percent in 1999-2000.
In 1998-99, funds of Rs.4,450 cr. were raised through issue of bonds, which formed nearly 81 percent of total mobilization.
In the year 1999-2000, there was one Fully Convertible Debenture (FCD) and one Partially Convertible Debenture (PCD) and were issued for Rs.20.78 crore and 30 crore respectively.
And, during 2000-01, there was only one fully convertible debenture, which was issued for Rs.36.26 crore.
The instrument-wise break-up of capital raised during 2001-02 and 2002-03 are shown below.
Instrument-wise analysis reflects investors’ preference for various types of instruments available in the primary market.
In the year 1996-97, the companies accumulated funds of Rs.7,844.44 crore by way of equity issue.
However, in the later years, the importance of equity issue has declined sharply and is substituted through debt finance, probably encouraged by the comparative cost advantage.
This analysis clearly suggests an ongoing structural change in the corporate financing.
This can be noticed nom the Table 4. Meanwhile, the bonds too contributed a major share of 44.4 percent during 2000-01 as against 41 percent in 1999-2000.
In 1998-99, funds of Rs.4,450 cr. were raised through issue of bonds, which formed nearly 81 percent of total mobilization.
In the year 1999-2000, there was one Fully Convertible Debenture (FCD) and one Partially Convertible Debenture (PCD) and were issued for Rs.20.78 crore and 30 crore respectively.
And, during 2000-01, there was only one fully convertible debenture, which was issued for Rs.36.26 crore.
The instrument-wise break-up of capital raised during 2001-02 and 2002-03 are shown below.