Cos garner Rs 9,100 cr through public issuance of NCDs in Apr-Jan period

As many as eight firms raised over Rs 9,100 crore through retail issuance of non-convertible debentures in the first ten months of the ongoing fiscal to meet their business needs.

In comparison, firms had garnered Rs 14,161 crore through this route in the April-January period of 2019-20.

Most of the funds have been mobilised to support lending activities, working capital requirements and other general corporate purposes.

Non-Convertible Debentures (NCDs) are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures.

According to the latest data available with regulator Sebi, eight entities mopped up funds totalling Rs 9,118 crore through retail issuance of NCDs in the current fiscal till January 2021.

The eight entities that raised funds are Muthoot Finance, Sakthi Finance, Kosamattam Finance, KLM Axiva Finvest, Muthoot Fincorp, Muthoottu Mini Financiers, Edelweiss Financial Services and Power Finance Corporation.

In terms of numbers, 14 issuers took this route in the April-January 2020-21 period compared to 30 in the year-ago period.

Individually, Power Finance Corp raised Rs 4,429 crore in the ongoing fiscal against a minimum target of Rs 500 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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