3 months Free Trail

Get world class research developed by an in house team of professionals backed with strong institutional support. With reports that span across time horizons, styles and easily actionable strategies, you are never too far from executing a winning trade.

Key features and benefits of Registeration :
  • My Portfolio : Access 360° View not only of your Portfolio with Emkay, but all your Investment Portfolios
  • Emkay Research : Get Emkay's exclusive Research Reports & Trading Ideas.
  • My Watch list : Track your favorite stocks, Derivatives, Currencies, Commodities, Mutual funds on the go
  • Markets : Grab Stock Market Information at your fingertips
  • News & Announcements : Stay Updated 24x7 with news that matters.
  • Alerts : Get Alerts on Emkay Research, Trading Ideas, news on your portfolio holdings & watchlist

Generate password

Change password

Forgot Customer Code

Would you like to create a personalised login id for logging in to Emkay Website ?

Change Personalised Login ID

Fund raising via NCD surges 3-fold to Rs 29,300-cr in 2018

Share Source By

Dion Global

31 Dec 2018

Indian companies raised over Rs 29,300 crore by issuing non-convertible debentures (NCDs) to retail investors in 2018 to meet their business requirements, representing a three-fold surge compare to the preceding year.

NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible.

According to latest data with the Securities and Exchange Board of India (Sebi), companies mobilised Rs 29,394 crore through NCD in 2018, much higher than Rs 9,779 crore raised from this route last year.

"Lack of corporate lending appetite by PSU banks combined with attractive yields in the corporate bond markets over bank rates appear to motivate corporates to shift towards market based borrowing through NCD issuances for raising funds," WGC Wealth Chief Investment Officer Rajesh Cheruvu said.

The companies raised money for funding expansion plans, retiring debt, supporting working capital requirements and other general corporate purposes.

Firms that tapped the NCD route this year are Muthoot Finance, Kosamattam Finance, Srei Equipment Finance, Dewan Housing Finance Corp, JM Financial Credit Solutions, Shriram Transport Finance Company, ECL Finance, Indiabulls Commercial Credit, Tata Capital Financial Services, Aadhar Housing Finance, Manappuram Finance and KLM Axiva Finvest.

Kosamattam Finance, Shriram Transport Finance Company and JM Financial Credit Solutions have taken this route twice to garner funds.

Individually, Dewan Housing raised Rs 10,945 crore in the period under review as against a target of Rs 3,000 crore and Tata Capital Financial Services raked in Rs 3,373 crore against a base size of Rs 2,000 crore.