Five NBFCs look to raise Rs 2,750 crore via public issue this month

The proceeds from the issue will be used for interest payment of existing borrowings, further lending, business operations and expansion plans

Five non-banking financial companies (NBFCs) are planning to raise up to Rs 2,750 crore this month in a bid to raise funds via public issues, Moneycontrol reported on Wednesday.

These NBFCs include 360 ONE Prime, Muthoot Fincorp, Kosamattam Finance, Muthoot Finance, and Edelweiss Financial Services.

According to the experts, the renewed interest in raising funds may be attributed to better pricing, transparency, and market access, among other factors.

While 360 One Prime, formerly IIFL Wealth, plans to raise up to Rs 1,000 crore through its maiden public issue of secured, redeemable, non-convertible debentures (NCDs), Kosamattam Finance is aiming to raise up to Rs 200 crore, Muthoot Finance up to Rs 1,000 crore, and Edelweiss Financial Services up to Rs 1,000 crore. Similarly, Muthoot Fincorp is looking at Rs 300 crore.

While Kosamattam Finance, Muthoot Finance, Edelweiss Financial Services issues are active, 360 One Prime's issue will open for subscription on January 11. Meanwhile, Muthoot Fincorp's subscription begins on January 12.

The proceeds from the issue will be used for interest payment on existing borrowings, further lending, business operations and expansion plans.

Notably, this year may register a downward trend for Indian bond yields. The expected movement is likely due to expectations of rate cuts by the US Federal Reserve and inflows from foreign investors after the inclusion of government securities in JPMorgan's Emerging Bond Index in June.

(With agency inputs)