Indian Firms Garner Rs 4,000 Crore via NCDs so far This Fiscal Year
New Delhi: Indian companies mopped up close to Rs 4,000 crore via retail issuance of non-convertible debentures in the ongoing fiscal year (2014-15), primarily to meet working capital requirements.
A cumulative amount of Rs 42,383 crore had been garnered through 35 issues of NCDs in the entire fiscal year 2013-14 (FY14).
NCDs are loan-linked bonds that can't be converted into stocks and usually offer higher interest rates than convertible debentures.
According to latest data available with the Securities and Exchange Board of India (Sebi), a total of nine companies including Shriram City Union Finance, SREI Infrastructure Finance Ltd and Muthoot Finance Ltd collectively raised Rs 3,939 crore via NCDs till during the current fiscal year (till August 4) 2014-15 through 10 issues. This was more than the Rs 1,550 crore initially targeted.
Kosamattam Finance Ltd opted for the NCD route twice to garner funds.
Individually, Shriram Transport Finance Company Limited mopped up Rs 1,975 crore against a target of Rs 500, Muthoot Finance raked in Rs 466 crore against a base size of Rs 250 crore and ECL Finance garnered Rs 400 crore against the target size of Rs 200 crore.
Besides, Muthootu Mini Financiers raked in Rs 262 crore against a target of Rs 125 crore and Muthoot Fincorp mopped up Rs 207 crore against a base size of Rs 100 crore.
During April-August period of 2013-14, only two firms - Shriram Transport Finance Company Ltd and SREI Infrastructure Finance - had raised Rs 736 crore and Rs 134 crore respectively via NCDs.
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