Fund raising via NCDs drop 67% on low investors' confidence in Apr-Aug FY20

NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures

Indian listed firms raised around Rs 7,000 crore by issuing NCDs in the first five months of this fiscal, a plunge of 67 per cent year-on-year, due to decline in investors' confidence following a series of payment defaults.

In comparison, companies had mobilised Rs 21,048 crore through this route in April-August 2018-19, according to latest data with Securities and Exchange Board of India (Sebi).

However, in terms of volume, there were 14 non-convertible debenture (NCD) issues in the first five months of 2019-20 as against 6 in 2018-19.

The companies raised money for funding expansion plans, retiring debt, supporting working