Srei Infrastructure Finance is top gainer today, up by 10 per cent

Three Indian companies have raised around Rs 800 crore through retail issuance of non-convertible debentures (NCDs).

Three firms, SREI Equipment Finance, Muthoottu Mini Financiers and SREI Infrastructure Finance have mobilised Rs 808 crore through NCDs during April-August of FY16, to support working capital requirements and general corporate purposes. 

Last year, Rs 4,020 crore was mobilised through 11 issuances. In the entire last fiscal of FY15, Rs 9,713 crore came through 25 issues of NCDs. 

Individually, SREI Equipment Finance raked in Rs 410 crore against a target of Rs 250 crore, Muthoottu Mini Financiers accumulate Rs 235 crore against a base size of Rs 125 crore and SREI Infrastructure Finance mopped up Rs 167 crore against the target size of Rs 200 crore.

NCDs are loan-linked bonds that cannot convert into stock and usually offer higher interest rates than convertible debentures. Companies including Jet Airways and DLF have lined up plans to raise about Rs 20,000 crore through this route. 

Most of these funds would be raised on a private placement basis rather than retail issuance. This money is mobilized through private placement is being viewed as a safer bet instead of opting for retail issuance. Srei Infra this month also planned to scale up acquisition of stressed infra project. 

Today Srei Infrastructure Finance is a top gainer, trading at Rs 47, up by more than 10 per cent.