DHFL public issue secures NCDs

For the second time in the current financial year (FY), Dewan Housing Finance Limited (DHFL) is hitting the market with a public issue of non-convertible debentures (NCDs) aimed at mopping up Rs10,000 crore for its operations.

With an issue size of Rs 2,000 crore, the company can retain over-subscription of up to Rs 8,000 crore, chief financial officer of DHFL Santosh Sharma said.

He said the proceeds of the issue would be utilised for borrowing purposes and to retire partially high-cost bank debt.

Unlike the first issue, the proposed offering would provide returns annually to the investor and not quarterly or half-yearly, Sharma said.

The options for investing periods are three years, five years and seven years with interest rates ranging from 9.05 per cent to 9.25 per cent.

The proposed offering would be the last one this FY, Sharma added.