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As many as four companies raised Rs 1,900 crore through retail issuance of non-convertible debentures (NCDs), in the first two months of the current financial year, to meet their business needs.
This is on top of the Rs 33,812 crore garnered in the entire preceding fiscal.
The funds have been mobilised for expansion, supporting working capital requirements and other general corporate purposes.
Market experts said firms have opted for the NCD route to raise funds due to volatility in the equity markets.
According to the latest data with the Securities and Exchange Board of India (SEBI), four companies have raised funds totalling Rs 1,899.38 crore through retail issuance of NCDs during April-May period of 2016-17.
Individually, Mahindra & Mahindra Financial Services mopped up Rs 1,000 crore against a target of Rs 250 crore and Muthoot Finance garnered Rs 500 crore against a target of Rs 250 crore.
Kosamattam Finance raised Rs 235 crore against a target of Rs 125 crore and Shakthi Finance raked in Rs 165 crore compared with the base size of Rs 100 crore.
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
Moreover, several companies have lined up plans to raise funds through NCDs on a private placement basis.
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