The five-year debentures, issued through private placement, has a greenshoe option of Rs 50 crore and the company has decided to retain the additional subscription.

Speaking to The Financial Express, Sushil Saboo, president, Grasim Industries, said the issue stands out in an hour of panic for the Indian economy. He said for a triple-A rated corporate, there should be no fund-raising problems whatever the situation in the external commercial borrowing market, and the downgrading of India by Moody's notwithstanding.

"Sanctions create unnecessary panic in the market, even when there are investors in the market for good paper from sound corporates. "The decent coupon rate reflects the strong fundamentals of the company andis expected to act as a benchmark for similar deals," Saboo said, "We received a very good response."

The issue, which opened on June 8, was lead arranged by SBI Capital Markets, ANZ Investment Bank, DSP Merrill Lynch and Birla Global Finance. The NCD issue closed on the first closing day on Monday.

Grasim Industries has stated in its letter of offer that the fund raised will be deployed for "general corporate purpose".

Besides, the non-convertible debentures will also part-fund the the company's long-term working capital requirements and be used for meeting its capital expenditure as well.

"The response assumes considerable importance in view of the US sanctions announced recently coupled with Moody's recent downgrading of India's rating and the general nervousness in the stock market," the company has said adding that over 25 cross sections of subscribers have subscribed to the issue.

Grasim Industries, according to Saboo, has demonstrated that good corporates can still manage rupee loans atdecent rates. "The panic of sanctions are quite unnecessary and there is room for good companies to raise money cheap," he added.