Indian cos garner Rs 4,000 cr via NCDs in current fiscal

Indian companies mopped up close to Rs 4,000 crore via retail issuance of non-convertible debentures in the ongoing fiscal, primarily to meet the working capital requirements.

A cumulative amount of Rs 42,383 crore had been garnered through 35 issues of NCDs in the entire 2013-14 fiscal.

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

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

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 have collectively raised Rs 3,939 crore via NCDs till during the current fiscal (till August 4) 2014-15 through 10 issuances.

This was more than the Rs 1,550 crore initially targeted.

Interestingly, Kosamattam Finance Ltd opted 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.