 "Indian companies raise Rs 3,300 cr via NCDs")
A cumulative amount of Rs 42,383 crore had been garnered through 35 issues of NCDs in the entire 2013-14 fiscal.
NCDs are loan-linked bonds that can't be converted into stock, and usually offer higher interest rates than convertible debentures.
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Most of the funds were raised to support the working capital requirements and for other general corporate purposes.
Shriram City Union Finance, Kosamattam Finance Ltd, SREI Infrastructure Finance Ltd, ECL Finance Ltd, Midland Microfin Ltd, Muthoot Finance Ltd and Shriram Transport Finance Company Ltd collectively raised Rs 3,311 crore via NCDs from April- July 2 of the current fiscal through seven issuances, as per the Securities and Exchange Board of India data.
This was more than the Rs 1,225 crore initially targeted. Individually, Shriram Transport Finance Company raised Rs 1,967 crore against the target of Rs 500 crore, Muthoot Finance mopped-up Rs 466 crore against a base size of Rs 250 crore and ECL Finance garnered Rs 400 crore against the target of Rs 200 crore.
Besides, Shriram City raked in Rs 200 crore against a target of Rs 100 crore, SREI Infra and Kosamattam Finance mopped up Rs 150 crore and Rs 100 crore, respectively against a target of Rs 75 crore each. Midland Microfin raised about Rs 27 crore against the base size of Rs 25 crore.
During April-July period of 2013-14, only two firms -- SREI Infrastructure Finance and Shriram Transport Finance Company had mopped up funds via NCDs.
SREI Infrastructure Finance had raised Rs 134 crore via NCDs as against the target of Rs 75 crore, while Shriram Transport Finance Company had raked in Rs 736 crore against base size of Rs 375 crore.