In the absence of fresh issue of tax-free bonds, investors are lapping up non-convertible debentures (NCDs). SEBI data shows that companies have raised close to Rs. 24,000 crore in first six month of current financial year i.e. HFY 2016-17.
In fact, NCDs of Dewan Housing Finance Corporation Limited, Mahindra & Mahindra Financial Services Limited and Indiabulls Housing Finance Limited were oversubscribed.
In terms of number of issues, 10 companies have raised capital through NCDs in HFY 2016-17 compared to only 4 companies in the corresponding period last year.
There could be a number of reasons behind this overwhelming response to NCDs - attractive yield post tax, no new issuances of tax free bonds during this period and relatively unattractive interest rates on bank FDs.
Collection of funds through NCDs as on September 2016
|
Companies |
Issue opened on |
Issue closed on |
Base issue size in Rs. crore |
Final issue size in Rs. crore |
|
Muthoot Finance Limited |
4-Apr-16 |
3-May-16 |
250 |
500 |
|
Shakthi Finance Limited |
7-Apr-16 |
6-May-16 |
100 |
164.87 |
|
Mahindra & Mahindra Financial Services Limited |
25-May-16 |
10-Jun-16 |
250 |
1000 |
|
Kosamatam Finance Limited |
2-May-16 |
31-May-16 |
125 |
234.51 |
|
Edelweiss Housing Finance Limited |
8-Jul-16 |
11-Jul-16 |
250 |
500 |
|
Dewan Housing Finance Corporation Limited |
3-Aug-16 |
4-Aug-16 |
1000 |
4000 |
|
Dewan Housing Finance Corporation Limited |
29-Aug-16 |
30-Aug-16 |
2000 |
10000 |
|
Indiabulls Housing Finance Limited |
15-Sep-16 |
16-Sep-16 |
3500 |
7000 |
|
Kosammattam Finance Limited |
29-Aug-16 |
27-Sep-16 |
100 |
199.79 |
|
SREI Infrastructure Finance Limited |
7-Sep-16 |
28-Sep-16 |
250 |
302.2 |
|
Total |
Rs.23901 |
|||
Source: SEBI
