DHFL plans to raise Rs 10,000 cr from NCDs by August next

Buoyed by its successful first public offer of non-convertible debentures (NCDs) recently, housing finance firm DHFL today said it will raise another Rs 10,000 crore through the instrument within next 12 months.
"We have got board approval for raising another Rs 10,000 crore which will be raised before August next year," DHFL Chairman and Managing Director Kapil Wadhawan said.
The money raised would help fund loan growth of over 15 per cent expected during the current fiscal, he said.
The company proposes to issue a secured redeemable non- convertible debenture of up to Rs 2,000 crore along with a green shoe option of Rs 8,000 crore in one or more tranches, he added.

Meanwhile, the company listed its maiden NCDs on both BSE and the NSE.
The issuance was subscribed nearly 19-times on its first day with overall subscription of about Rs 19,000 crore.

DHFL's issue comprised of Rs 1,000 crore with an option to retain oversubscription of up to Rs 3,000 crore, aggregating to shelf limit of Rs 4,000 crore.
The portion reserved for qualified institutional buyers portion was subscribed 24.74 times, while the same for non-institutional investors subscribed 13.33 times.
The quota reserved for High Networth Individuals (HNIs), investing over Rs 10 lakh was subscribed 31.07 times and the limit reserved for retail investing, who invest up to Rs 10 lakh witnessed a subscription of 6.19 times.

It was first-come, first-served facility, introduction of innovative instrument (inflation linked bond), pool of liquidity available in the market, triple A rating and roadshows organised by the firm lead to the over-subscription.