DHFL's NCD issue subscribed 19 times on day 1

Generating a record demand, housing finance firm DHFL's maiden issue of non-convertible debentures was subscribed nearly 19-times on its first day today with overall subscription of about Rs 19,000 crore.
This marks the highest response on day one to a corporate NCD public issue in last five years.
DHFL's issue comprises Rs 1,000 crore with an option to retain over-subscription of up to Rs 3,000 crore, aggregating to shelf limit of Rs 4,000 crore.
As per the combined data of BSE and NSE, the issue size was oversubscribed 18.79 times at the end of today's bidding at 1700 hrs, generating demand worth Rs 18,791 crore.

The issue may close tomorrow itself, much ahead of the scheduled closing of August 16.
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.
The company said 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.

"We are overwhelmed with the investor response to DHFL's first NCD public Issue, which was oversubscribed across categories and has attracted a subscription of around Rs 19,000 crore on day one," DHFL CMD Kapil Wadhawan said in a statement.
"The issue will deepen the Indian debt market with wider public participation. DHFL has taken the lead and will explore the possibility of planning a series of such offerings in the future. This was a source of money which was seldom used but a myth has been broken today and the real appetite for making investments in debt papers has now been proven, especially at a retail level," he added.

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.
Edelweiss Financial Services, A K Capital Services, ICICI Bank, SBI Capital Markets, Trust Investment Advisors and YES Securities are the lead managers to the issue.