Millennium Post

Firms garner Rs 6,000 crore via NCDs in current fiscal

Firms garner Rs 6,000 crore via NCDs in current fiscal
In comparison, firms had collectively raised Rs 10,846 crore via 10 issues in the April-October period of the previous fiscal. Most of the funds have been raised to support the working capital requirements and for other general corporate purposes.

Firms including Shriram City Union Finance, Kosamattam Finance, SREI Infrastructure Finance, ECL Finance and Muthoot Finance collectively raised Rs 5,703 crore via NCDs in the current fiscal year through 17 issuances, data from Securities and Exchange Board of India (Sebi) shows.

This was more than the initial target of Rs 2,650 crore. Market experts said that fund raising via NCDs has been less compared to the year-ago period as companies have preferred QIPs and rights issues.

Moreover, many companies are looking to raise funds via initial public offers (IPOs) as investor confidence has returned in the equity markets after the general elections in May.

Individually, Shriram Transport Finance Company raised Rs 1,975 crore, as against a target of Rs 500 crore; Muthoot Finance mopped up Rs 466 crore against a base size of Rs 250 crore; and ECL Finance garnered Rs 400 crore as against Rs 200 crore.

Moreover, SREI Infrastructure Finance, Shriram Transport Finance Company, Kosamattam Finance, Muthoot Finance, Muthoot Fincorp and Muthoottu Mini Financiers tapped the NCD route more than once.

In the previous fiscal, about Rs 42,383 crore was generated through 35 issues of NCDs.

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