DHFL to raise Rs 10,000 crore for business growth funding via NCDs
Deewan Housing Finance Corporation Limited announced on Thursday that it planned to raise Rs 10,000 crore from non-convertible debentures (NCDs) to fund business growth.
“DHFL that is registered with National Housing Bank proposes to open on Monday August 29, public issue of secured redeemable Non-Convertible Debentures of face value of Rs 1,000 each with a base issue size of Rs 2,000 crore and an option to retain oversubscription of up to Rs 8,000 crore aggregating up to Rs 10,000 crore,” the company said in a statement.
The secured NCDs proposed were given a triple A rating by Credit Analysis and Research Ltd – CARE.
“With the government taking several steps to grant housing finance companies better supply of funds for the low-cost housing sector, the company is tapping various funding sources innovatively at optimal cost,” DHFL Chairman and Managing Director Kapil Wadhawan said.
The NCDs have options of 3, 5, 7 year tenor with annual interest payment with interest rates on proposed NCDs varying from 9.05% to 9.25%.
Retail individual investors and High Net Worth Individuals (HNIs) have a combined allocation ratio of 60%. Interest on application money is at 8 % and interest on refunded money is at 6%, the company stated.
Shares of the company were trading down 0.39% at Rs 280.35 on BSE.