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Mortgage lender Dewan Housing Finance Corporation’s issue of non-convertible debentures worth up to Rs 10,000 crore was fully subscribed today on the first day of the issue itself.
The issue got subscribed 3.32 times till 1 pm, according to latest update available with the National Stock Exchange (NSE).
DHFL’s issue comprises Rs 2,000 crore, with an option to retain oversubscription up to Rs 8,000 crore aggregating up to a shelf limit of up to Rs 10,000 crore.
Bidding for the issue opened today and closes on September 12.
Net proceeds of the issue will be used for funding loan growth.
This was the company’s second NCD issue. The mortgage lender’s maiden issue, which opened earlier this month, was subscribed nearly 19 times on its first day with an overall subscription of about Rs 19,000 crore.
DHFL’s issue comprised Rs 1,000 crore with an option to retain oversubscription of up to Rs 3,000 crore, aggregating a shelf limit of Rs 4,000 crore.
The follow-on secured NCD issue has a 7-year tenor with annual frequency of interest payment. The interest rate on proposed NCDs varies between 9.05 per cent and 9.25 per cent.
Retail individual investors and High Net Worth Individuals (HNIs) have a combined allocation ratio of 60 per cent.
Edelweiss Financial Services, A K Capital Services, ICICI Bank, SBI Capital Markets, Trust Investment Advisors, Yes Securities, Axis Bank, IndusInd Bank and IIFL Holdings are the lead managers to the issue.
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