Companies garner Rs 10,200 cr via NCDs

Indian companies have garnered over Rs 10,200 crore through retail issues of non-convertible debentures (NCDs) in the ongoing fiscal, with PFC contributing the most to the fund raising.

The funds have been raised for business expansion plans, to support working capital requirements and for other general corporate purposes.

Six firms -- Power Finance Corporation (PFC), Muthoot Finance, SREI Equipment Finance, Muthoottu Mini Financiers, NTPC and SREI Infrastructure Finance -- have collectively mobilised Rs 10,242 crore through NCDs during the current fiscal till October 9, as per latest data available with Sebi.

This is much higher than Rs 9,713 crore mopped-up in the entire past fiscal (2014-15) through 25 issuance.

All the six firms have raised more than the targetted amount barring SREI Infrastructure Finance, which mopped-up Rs 163 crore against a base size of Rs 100 crore.

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

Many companies have lined-up plans to raise about Rs 20,000 crore through this route. However, most of these funds would be garnered via private placement basis rather than retail issuance.

During the current fiscal, PFC mobilised a staggering Rs 8,457 crore against the base size of Rs 100 crore, Muthoot Finance raked in Rs 536 crore against the target amount of 250 crore.

Besides, NTPC garnered Rs 447 crore against the base size of Rs 400 crore, SREI Equipment Finance raised Rs 410 crore against a target of Rs 250 crore and Muthoottu mopped-up Rs 228 crore against the base size of Rs 125 crore.