Indian companies have raised close to Rs 24,000 crore by issuing non-convertible debentures (NCDs) in the first half of the current fiscal to meet their business needs.
In comparison, firms had mobilsed more than Rs 1,502 crore in the April-September period of the preceding financal year.
The funds have been raised for expansion plans, to support working capital requirements and other general corporate purposes.
According to the latest data with the Securities and Exchange Board of India (Sebi), companies have raised funds totalling Rs 23,901 crore through retail issuance of NCDs during April-September period of 2016-17.
In terms of number, funds were raised through 10 issuance in the first half of the current fiscal as compared to 4 in the year-ago period.
During the current fiscal, two firms -- Dewan Housing Finance Corporation Ltd and Kosammattam Finance -- took the NCD route twice to mobilise capital.
Individually, Indiabulls Housing Finance raised Rs 7,000 crore against a target of Rs 3,500 crore and Mahindra & Mahindra Financial Services mopped up Rs 1,000 crore against a base size of Rs 250 crore.
Edelweiss Housing Finance and Muthoot Finance garnered Rs 500 crore each against a target of Rs 250 crore.
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
Moreover, several companies have lined up plans to raise funds through NCDs on a private placement basis.
In the 2015-16, companies had raked in Rs 33,812 crore, while in 2014-15, they had raised Rs 9,713 crore through this route.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
