Wednesday, December 3, 2008

India Inc Raising Funds Via Fds - Dec 03, 2008

Due to the reduction in credit lines and non-availability of easy working capital, cash-strapped companies are looking borrow money from the public in form of fixed deposits. Given the recent economic downturn in markets across the world, more and more companies are flocking to issue deposits to the public in a bid to raise funds.Balaji G K, Head of Investing Business at Way2Wealth, said, FDs are attractive for companies in a market such as this.

Tata Motors, which acquired British brands Jaguar and Land Rover earlier this year for $2.4 billion, offers10% on a one-year deposit, 10.5% for a two-year tenure and 11% for a three-year deposit.Mahindra & Mahindra and Godrej Industries, too, have fixed deposit schemes but did not give details of how much they have raised. An investor Vijay Mishra said that he would rather invest in FDs of banks.

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