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The issue opens on August 4 and closes on August 26 with an option to close early in case of getting oversubscribed, the company said. The tenure ranges from with tenures ranging from 3 years to 7 years for the fixed coupon rate of 12.5 per cent to 12.75 per cent.
Allotment is on a first-come-first-serve basis. The minimum application amount for the issue is Rs 25,000. The NCDs proposed to be issued under the Issue have been rated 'CARE BBB+' by CARE.
The company plans to use the proceeds of the issue to finance its DSK Dream City, an integrated township spread across more than 200 acres on the Pune-Sholapur road near Pune and few other projects under development and general corporate purpose.
"We are the first real estate company in recent time to get market regulator Securities and Exchange Board of India's approval to raise money through NCDs for the retail individual investors. We will be getting a major part of project funding cost of Rs 851 crore (for Phase I) from the booking made for residential units and from the banks, the NCD issue is being exercised as third avenue for meeting the project cost. We are planning to use the issue proceeds for projects under development and general corporate purposes, " said D S Kulkarni, chairman and managing director, D S Kulkarni Developers.
According to company, the retail individual investors and Hindu undivided family will be allotted 80 per cent of the total issue size, 10 per cent will be allotted to institutional investors and remaining 10 per cent to non-institutional investors
The issue is lead managed by SBI Capital Markets Ltd and Link Intime India Pvt Ltd is the registrar to the issue. GDA Trusteeship Ltd is the Debenture Trustee.
