Six cos garner Rs 6,400 cr via NCDs in FY17

As many as six firms have garnered Rs 6,400 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 mobilised in the entire preceding fiscal.
The funds have been mobilised for expansion, support working capital requirements and other general corporate purposes.
According to the latest data with the Securities and Exchange Board of India (Sebi), six companies have raised funds totalling Rs 6,400 crore through retail issuance of NCDs in the current fiscal.
Individually, Dewan Housing Finance Corporation raised Rs 4,000 crore as against a target of Rs 1,000 crore, Mahindra & Mahindra Financial Services mopped up Rs 1,000 crore as against a base size of Rs 250 crore and Edelweiss Housing Finance garnered Rs 500 crore as against a target of Rs 250 crore.

Muthoot Finance mopped up Rs 500 crore as 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.