Reliance Capital raises Rs 2,000 cr though debentures

Funds will be utilised for refinancing existing debt and to grow company's lending business

Reliance Capital (RCap), a unit of the Anil Ambani-led Reliance Group, has raised about Rs 2,000 crore through non-convertible debentures.

The finance company will use the proceeds to refinance debt and grow its lending business. The debt-to-equity ratio remains at a conservative 1.7, among the lowest in the non-banking finance sector.

Sam Ghosh, executive director and group chief executive director, said the finance company would continue to maintain a healthy asset-liability mix, and provide optimally priced funds for high-growth lending businesses.

RCap has raised Rs 3,000 crore till date in the current financial year. The benefit of softening of interest rates in the market is about 30 basis points.

The issue size offered was Rs 1,000 crore with an option to retain oversubscription, by way of a greenshoe option, up to Rs 1,000 crore. The issue was fully subscribed, including the greenshoe option.  

The five-year debentures carry an annual coupon of 8.9 per cent, while it is nine per cent for the 10-year paper.  

The debentures will be listed on the BSE.  The issue was rated AAA by two rating agencies — Credit Analysis and Research Limited (CARE) and Brickwork Ratings India.

The company posted a consolidated net profit of Rs 207 crore for the quarter ended June 30, 2016, up from Rs 201 crore in the quarter ended June 30, 2015. Its total income for the period under review was Rs 3,663 crore up from Rs 2,470 crore for the corresponding period in FY16.

According to the company, its total net worth as on June 30, 2016, stood at Rs 15,634 crore, registering an increase of 13 per cent year-on-year (y-o-y). As of June 30, 2016, the company's total assets stood at Rs 69,356 crore — an increase of 40 per cent y-o-y.