Indian companies have mopped up over Rs 5,000 crore via retail issuance of non-convertible debentures (NCDs) in the first seven months of the current fiscal, primarily to meet their working capital requirements.
In comparison, firms had collectively raised close to Rs 10,846 crore via 10 issue in the April-October period of last fiscal (2013-14).
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 5,136 crore via NCDs in the current fiscal year through 15 issuances, as per data from Securities and Exchange Board of India (Sebi).
This was more than the initially targeted Rs 2,250 crore.
NCDs are loan-linked bonds that can't be converted into stock and usually offer higher interest rates than convertible debentures.
Market experts said that fund raising via NCDs route has been less compared to the year-ago period as companies have preferred QIP route and rights issue for garnering money.Moreover, many companies are looking to tap the IPO route for fund raising as investor confidence has returned in the equity markets after the General elections in May.