Indian companies have raised more than Rs8,000 crore via retail issues of non-convertible debentures (NCDs) in the ongoing fiscal so far primarily to meet their working capital requirements. In comparison, firms had collectively raised Rs33,460 crore via 24 issues in the April-February period of the previous fiscal.
Most of the funds have been raised to support 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 8,055 crore via NCDs in the current fiscal (till February 4) through 20 issuances, according to data from Securities and Exchange Board of India (Sebi). This is more than the initial target of Rs3,350 crore. Market experts said fund raising via NCDs has been lower compared to the year-ago period as companies have preferred QIPs and rights issues.