5 companies to raise up to Rs 2,198 crore via bonds today

Bonds

Five companies — Manappuram Finance, Spandana Sphoorty Financial Services, Sheela Foam, Belstar Microfinance, and Ecap Equities — are floating bonds worth Rs 2,198 crore on October 5, market sources have said.

According to sources, Manappuram Finance will raise Rs 1,000 crore through two bonds maturing in 539 days and 724 days.

Spandana Sphoorty plans to raise Rs 70 crore through two bonds maturing in 17 months and 18 days and 23 months and 16 days.

Sheela Foam, the maker of Sleepwell mattresses, is in the market to raise Rs 725 crore through bonds that will mature in 36 months. These bonds have ‘AA’ ratings with ‘Stable’ outlook by India Ratings.

Belstar Microfinance and Ecap Equities aims to raise Rs 283 crore via 30-month bonds and Rs 40 crore through 17-month bonds.

Bidding for these bonds takes place on the electronic platform of BSE.

Bonds allow companies to borrow large sums at low interest rates, allowing them to invest in growth and other projects. Bonds also gives companies greater freedom to operate as they see fit against bank loans which come with conditions.

On October 4, JM Financial Asset Construction Company, Marwadi Shares and Finance, and NNP Construction Pvt Ltd raised Rs 731 crore.

Of the total amount, JM Financial Asset Construction Company raised Rs 35 crore through bonds maturing on December 5, 2024. A sum of Rs 130 crore was raised by Marwadi Shares and Finance and Rs 551 crore by NNP Construction Pvt Ltd.