DSK to partly fund realty proj through Rs 200 cr NCD issue

Realty firm D S Kulkarni Developers Ltd (DSKSL) will partly fund its integrated township project 'DSK Dream City Phase-I' near Pune through proposed Rs 200-crore non-convertible debentures (NCD) issue.

The company is setting up a Rs 850-crore integrated township spread across 217.90 acres of land on Solapur road near Pune, which will be partly financed through proposed Rs 200-crore NCD issue, a company statement said today.

The company is also setting up DSK Vishwa - Anandghan a project at Kirkatwadi in Pune. The Rs 262-crore project is expected to be completed by December 2016. Its DSK Nandanvan project worth Rs 34.74 crore is expected to be completed by June 2017, and DSK Mayurban with project size of Rs 53.39 crore expected to be completed by June 2017.

The company proposes to offer a public issue of secured redeemable NCDs of face value of Rs 5,000 each for option I, II and IV; and Rs 25,000 each for option III, aggregating up to Rs 100 crore (with an option to retain over-subscription of an equal amount) aggregating up to Rs 200 crore.

The issue will open for subscription on August 4.

Under the NCD issue, the company will offer an additional coupon of 0.25%  per annum to all valid applications by women investors, DSK employees, existing equity shareholders, senior citizens and Ex-servicemen.

The post-tax returns are higher as compared to FDs considering that the effective yields for general investors are 13.1% per annum for option I,13.43% per annum for option II; 12.65% for option III; and 13.52%  for option IV categories.

The NCDs are proposed to be listed on the Bombay Stock Exchange (BSE). The Lead Manager to the issue is SBI Capital Markets Limited.