Cos garner Rs 3,700 cr via NCDs in April-July FY'18

Three companies raised Rs 3,700 crore through retail issuance of non-convertible debentures (NCDs) in the April-July period of the ongoing fiscal to meet their business expansion plans.

In comparison, five companies had collected Rs 2,400 crore through this route in the April-July period of 2016-17.

The funds have been mobilised for business expansion, supporting working capital requirements and other general corporate purposes.

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

According to the latest data with markets regulator Sebi, three firms -- Muthoot Finance, Mahindra & Mahindra Financial Services and Srei Equipment Finance -- have mopped-up funds totalling Rs 3,699 crore through retail issuance of NCDs in the current fiscal till July 31.
 

Individually, Muthoot Finance raised Rs 1,969 crore as against a target of Rs 200 crore in the ongoing fiscal, Mahindra & Mahindra Financial Services garnered Rs 1,150 crore as against a target of Rs 250 crore and Srei Equipment Finance raked in Rs 580 crore against a base size of Rs 500 crore.

Overall companies had mobilised about Rs 29,550 crore in the entire preceding fiscal.