Companies garner about Rs 15,000 cr via NCDs in FY'16

New Delhi: Indian companies have raised close to Rs 15,000 crore through retail issuance of non-convertible debentures (NCDs) in the ongoing fiscal so far to meet business requirements. In comparison, Rs 9,713 crore was raised via 25 such issuance in the entire past fiscal, 2014-15.

Most of the funds have been mobilised for expansion plans, to support working capital requirements and for other general corporate purposes.

NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.

As per the latest data with the Securities and Exchange Board of India (Sebi), as many as ten firms raked in a total of Rs 14,737 crore via NCD route in the current fiscal till December 10.

Experts said that volatile market conditions forced many companies to opt for NCD route to garner fresh capital. Individually, Indian Railway Finance Corporation garnered Rs 10,806 crore against the base size of Rs 1,000 crore.

NTPC, Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) raked in Rs 700 crore each against a target of Rs 400 crore, Rs 300 crore and Rs 100 crore respectively.

Besides, Muthoot Finance raised Rs 500 crore against the targeted amount of Rs 250 crore and SREI Equipment Finance mopped up Rs 410 crore compared to the base size of Rs 250 crore.

Further, SREI Infrastructure Finance, Muthoottu Mini Financiers, Muthoot Fincorp and Kosamattam Finance too have taken this route to garner funds.