Reliance Home Finance's NCD issue elicits strong response

Reliance Home Finance's maiden issue of non-convertible debentures saw robust response on the first day today with overall subscription worth nearly Rs 4,000 crore.
The Rs 1,000-crore issue would close tomorrow itself, ahead of the scheduled closing of January 6.
Sources said the issue has been hugely oversubscribed and got subscription worth around Rs 4,000 crore on the first day.
The company received the huge subscription mainly on account of an overwhelming response from retail investors, they added.
Proceeds from the issue would be utilised for lending, financing, repayment of loans and general corporate purposes.
As per the combined data of BSE and NSE, the issue size was oversubscribed 3.01 times till 1700 hours today, generating demand worth Rs 3,012.91 crore.

The company was planning to raise Rs 1,000 crore as base issue size by offering secured and unsecured non-convertible debentures (NCDs) at a face value of Rs 1,000 each with an option to retain over-subscription.

NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
A 100 per cent subsidiary of Reliance Capital, the company provides a wide range of loan solutions like home loans, loan against property and construction finance.
Edelweiss Financial Services, A K Capital Services, Axis Bank, Trust Investment Advisors and Yes Securities (India) Ltd are lead managers to the issue.

In the six months ended September 30, 2016, Reliance Home Finance's disbursements stood at Rs 3,342 crore and the assets under management were at Rs 9,383 crore.