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D S Kulkarni Developers Ltd today said its public issue for secured redeemable non-convertible debentures (NCDs) has been fully subscribed.
The company received 163,127 bids which is 1.02 times subscription overall as of August 21, 2014. The NCD issue will close on August 26 and the company has an option to retain additional subscription up to Rs 100 crore, a statement said.
The company would accept all valid applications from investors until August 26, 2014.
The company has come out with an NCD issue which has been rated 'CARE BBB+' by CARE for an amount of upto Rs 200 crore. The company proposes to use the issue proceeds for projects under development and general corporate purposes.
The NCD issue has received a positive response from women investors and senior citizens, who have bid for 96,629 bonds, which is 60 per cent of the overall subscription.
"We are overwhelmed by retail investors' response to our secured redeemable NCD issue, which is the first one ever by any real estate company in a long, long time," D S Kulkarni Developers' Chairman D S Kulkarni said.
According to experts, interest rates being offered by the company with effective yields ranging from 13.1 per cent to 13.52 per cent per annum are better than yields prevailing for bonds of other comparable companies in the secondary market.
Another attractive feature for women and senior citizens is that there is no tax deduction at source (TDS) if bonds are held in a demat account, which is very useful to senior citizens and women because their overall income is generally below taxable limits.
The NCDs issue is being seen as significant in terms of deepening the bond market.
The NCDs are proposed to be listed on the BSE, the statement said.