Cos raise Rs 450 cr via NCDs in Apr-May

Indian companies mopped up Rs 450 crore via retail issuance of non-convertible debentures in the first two months of the current fiscal, 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 2013-14.

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

Most of the funds were raised to support working capital requirements and for other general corporate purposes.

Indian companies -- Shriram City Union Finance, SREI Infrastructure Finance Ltd and Kosamattam Finance Ltd -- collectively raised Rs 450 crore via NCDs in the first two months (April-May) of 2014-15 through three issuances, according to data with the Securities and Exchange Board of India (Sebi).

This was more than the Rs 250 crore initially targeted.

Shriram City raked in Rs 200 crore as against a target of Rs 100 crore, SREI Infra and Kosamattam Finance mopped up Rs 150 crore and Rs 100 crore respectively against a target of Rs 75 crore each.

During April-May period of 2013-14, only one firm - SREI Infrastructure Finance - had raised Rs 134 crore via NCDs against the target of Rs 75 crore.