Retail investors lap up NCDs as mart bank deposit fail them

Mumbai: The mayhem in equities market and falling deposit rates have retail investors lapping up corporate debt like never before, if the overwhelming response to the recent/ongoing NCD issues from NBFCs, which are facing one of the worst liquidity crisis ever, is any indication. This shows that retail investors' confidence in NBFCs have not been deterred by the risks facing the sector following defaults by IL&FS, DHFL and Reliance Home Finance, show the subscription data.

For instance, the just concluded Rs 500 crore NCD issue from Tata Capital had Rs 175 crore reserved for the retail but got 450% oversubscription at Rs 787 crore, while IIFL's Rs 100 crore issue with Rs 40 crore for retail got an oversubscription worth Rs 163 crore or 408%, BSE data shows. Similarly, JM Financial's ongoing Rs 100 crore issue has Rs 40 crore reserved for the retail but has seen a full 185% or Rs 78 crore oversubscription, while Shriram Transport got 278%, and Indiabulls Rs 333 crore for Rs 133 crore reserved for the retail.

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