Arvind Mills Debenture Issue Sails Through

The success of the Arvind issue comes against the backdrop of debenture issues of the Tata Iron and Steel Company and Larsen & Toubro, which have not done particularly well.

Both these companies have been able to collect just about Rs 450 crore out of the Rs 500 crore that they intended to raise.

Sources in Kotak Mahindra, which was one of the book running lead managers, said they will start allotment of the placement portion in two days.

The public portion had been able to garner Rs 30 crore till two days back and the rest of the money came in the last two days, they said.

 

We do not have to worry any more as the issue has been able to draw the minimum subscription before the issue closure, a source in Kotak Mahindra said.

Debt market analysts said the issue did well because of its small size and the timing. Collecting Rs 60 crore through the placement portion was not very difficult and the public portion was also able to evoke a good response too, a merchant banker said.

The issue was bound to do well because of the good yields that the company was offering, said another.

The company was offering the Regular Income debenture at an annualised yield of 18.27 per cent while the Triple Plus debenture was being offered at an yield of 18.34 per cent.