Companies garner Rs 3,700 cr via NCDs in April-July FY18

By: | Published: August 9, 2017 7:18 PM

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.

Companies garner Rs 3,700 cr via NCDs in April-July FY18 Mahindra & Mahindra Financial Services Srei Equipment Finance Muthoot FinanceIn comparison, five companies had collected Rs 2,400 crore through this route in the April-July period of 2016-17. (PTI)

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.

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