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HomeUncategorizedIndian firms mop up Rs. 2,443 crore via NCDs in July

Indian firms mop up Rs. 2,443 crore via NCDs in July

Three Indian companies together raised Rs. 2,443.66 crore through issuance of non-convertible debentures to investors during July, taking the cumulative amount mobilised from such securities to more than Rs. 3,700 crore since beginning of the current fiscal.

In comparison, an amount of about Rs. 736 crore was raised through a single public issue of NCDs during July last fiscal, latest data compiled by markets regulator Sebi showed.

With the July 2014 figures, the collective amount of funds mobilised by companies through NCDs has touched Rs. 3,784.85 crore for the current financial year, while the total number of issues stand at nine.

In the April-July period last fiscal, the amount garnered stood at Rs. 869.60 crore via two NCDs issue.
NCDs are loan-linked bonds that can’t be converted into stock, and usually offer higher interest rates than convertible debentures.

Most of the funds raised by the companies are for the purpose to support the working capital requirements as well as for other general corporate purposes.

Out of total Rs. 2,443.66 crore funds raised in July, Shriram Transport Finance Company mopped up Rs. 1,974.85 crore through its NCD issue — the highest amount seen so far in the first four months of 2014-15.

Muthoot Fincorp (Rs. 206.71 crore) and Muthootu Mini Financiers (Rs. 262.10 crore) were the other two companies that raised funds through issue of NCDs.

The total proceeds raised in July were more than the Rs. 725 crore base issue size of the companies.
Individually, Shriram Transport Finance Company had a base issue size of Rs. 500 crore, Muthoot Fincorp (Rs. 100 crore) and Muthoot Mini Financiers (Rs. 125 crore).

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