Comments
As many as five companies have raised more than Rs 2,700 crore through retail issuance of non-convertible debentures (NCDs) in the ongoing financial year to meet their business needs.
This is on top of the Rs 33,812 crore garnered in the entire preceding fiscal.
The funds have been mobilised for expansion, to support working capital requirements and for other general corporate purposes.
Experts said volatile market conditions forced many companies to opt for NCD route to garner fresh capital.
According to the latest data with the Securities and Exchange Board of India, five companies have raised funds totalling Rs 2,737 crore through retail issuance of NCDs in the current fiscal till July 11.
Individually, Mahindra & Mahindra Financial Services mopped up Rs 1,000 crore against a target of Rs 250 crore and Edelweiss Housing Finance garnered Rs 838 crore against a target of Rs 250 crore.
Muthoot Finance mopped up Rs 500 crore against a target of Rs 250 crore, Kosamattam Finance raised Rs 235 crore against a target of Rs 125 crore and Shakthi Finance raked in Rs 165 crore compared with the base size of Rs 100 crore.
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
Moreover, several companies have lined up plans to raise funds through NCDs on a private placement basis.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.