Indian firms have raised a staggering over Rs.58,000 crore through issuance of non-convertible debentures (NCDs) in the ongoing fiscal, amid a sluggish equity markets.
This was much higher than Rs.9,713 crore garnered in the entire last fiscal.
Most of the funds have been mobilised for expansion, to support working capital requirements and for other general corporate purposes.
The debentures are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
As per the provisional data with Securities and Exchange Board of India (SEBI), firms raked in a total of Rs.58,533 crore through non-convertible debentures in the current fiscal (2015-16) as on March 14.
In terms of numbers, 20 issuances have taken the NCD route in the ongoing fiscal as compared to 25 in the entire 2014-15.
Some companies have opted for this route twice during the current fiscal.