Indian companies have raised Rs 23,735 crore through retail issuance of non-convertible debentures (NCDs) in the first half of the current financial year, to meet their business needs.
This is on top of the Rs 33,812 crore mobilised in the entire preceding fiscal.
The funds have been mobilised for business expansion, support working capital requirements and general corporate purposes.
According to the latest data with the Securities and Exchange Board of India (Sebi), companies have raised funds totalling Rs 23,735 crore through retail issuance of NCDs during April-September period of 2016-17.
The money was mobilised through nine issuances by Muthoot Finance, Shakthi Finance, Mahindra & Mahindra Financial Services, Dewan Housing Finance Corporation, Kosammattam Finance, Edelweiss Housing Finance and Indiabulls Housing Finance.
Besides, Dewan Housing Finance Corp and Kosammattam Finance took the route twice to garner funds.
Individually, Dewan Housing Finance Corp raised Rs 4,000 crore as against a target of Rs 1,000 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 raked in Rs 500 crore each as 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.
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