Non-convertible debentures seem to be emerging as a preferred fund-raising option for companies, especially those from NBFC space, as they have lined up plans to raise more than Rs 19,000 crore through this route.
NCDs (Non-Convertible Debentures) are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than that of convertible debentures. At least five companies — Power Finance Corp (PFC), Housing and Urban Development Corp (HUDCO), India Infoline Finance, Jagran Prakashan and Thomas Cook — have plans to collectively raise Rs 19,155 crore through the NCD route.
(Published 09 December 2012, 15:51 IST)