Indian Companies Raise 
4,500 Crore Via NCDs
NEW DELHI: Indian companies have mopped up close to 
4,500 crore via retail issuance of non-convertible debentures (NCDs) till September 18 in the current fiscal year, primarily to meet their working capital requirements.
The capital mopped up through this route exceeded the targets during the period.
About 42,383 crore had been garnered through 35 issues of NCDs in the entire fiscal year 2013-14.
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 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, Midland Microfin and Muthoot Finance collectively raised 4,439 crore via NCDs in the current fiscal year through 12 issuances, data from the Securities and Exchange Board of India (Sebi) showed.
This was more than the initially targeted 1,850 crore.
Shriram Transport Finance Company raised 1,967 crore as against the target of 500 crore; Muthoot Finance mopped up 466 crore against a base size of 250 crore, and ECL Finance garnered 400 crore as against 200 crore.
Besides, Muthootu Mini Financiers raked in 250 crore against a target of 125 crore, Muthootu Fincorp mopped up 194 crore against the base size of 100 crore.
Muthoot Finance tapped the NCD route more than once.
During the year-ago period (April-September 2013-14), the companies - SREI Infrastructure Finance, Shriram Transport Finance Company, Rural Electrification Corporation and Muthoot Finance - had raised 4,713 crore.
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