Neha Dhamija
The volume of ‘corporate public deposits market’ has doubled from where it stood six months ago. The value is expected to shoot up from Rs.700 crore a month to about Rs.1500 crore a month, by the end of last quarter of 2008-09.
The number of companies getting interested in public deposits schemes has also increased from 60 to 110 with the interest offered being up to 12% for three years. The divergence of funds in more visible in real estate sector.
Among the ones to hold major share of this market, TATA Motors sits at quarter of the public deposit space. The scheme launched on 1 December has managed to fetch the firm a sum of Rs.175 crores, in a single month. No information on the ‘amount the group plans to raise’ or the ‘time period for which the scheme holds’ has been divulged; however the statutory limits is Rs.2700 crores. The auto giant opted for public deposits to raise funds due to facing troubles in financing its acquisition of jaguar and land Rover.
However, the road for mid- and small- cap companies is believed not to be equally gloomy.
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