Indian companies raised more than Rs 30,000 crore through retail issuance of non-convertible debentures (NCDs) in the first nine months of the ongoing fiscal to meet business requirement. This is much higher than Rs 9,713 crore garnered by companies in the entire last fiscal.
Most of the funds have been mobilised for expansion, to support working capital requirements and other general corporate purposes. NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
As per the latest data with the Securities and Exchange Board of India (Sebi), as many as 11 firms raked in a total of Rs 30,422 crore through NCDs during the April-December period of 2015-16.