Comments
Mortgage lender Dewan Housing Finance Corporation Ltd’s (DHFL) maiden issue of non-convertible debentures worth up to Rs 4,000 crore was fully subscribed today, the very first day of the issue.
The issue was subscribed 18.79 times till 5 pm, according to latest update available with National Stock Exchange (NSE).
The qouta reserved for retail investors, who apply for NCDs aggregating to a value of more than Rs 10 lakh was subscribed 8.25 times, while limit reserved for those retail investors, who apply for NCDs valuing up to Rs 10 lakh subscribed 62 per cent, data showed.
The other category, comprising Qualified Institutional Buyers, also generated good demand.
DHFL’s issue comprises Rs 1,000 crore with an option to retain oversubscription up to Rs 3,000 crore aggregating up to shelf limit of up to Rs 4,000 crore.
The bidding of the issued opened today and closes on August 16.
For investors, there is an option to choose between three, five and ten year tenors with monthly, annual and cumulative payment options.
The annual yield will go up to 9.2-9.3 per cent, depending upon the class of investors — whether retail or high net worth individual — and the tenor.
The net proceeds of the issue will be used for onward lending, financing and general corporate purposes.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.