Mumbai–Reliance Home Finance’s maiden public issue, offering Secured Redeemable Non-Convertible Debentures (Secured NCDs) and Unsecured Redeemable Non-Convertible Debentures (Unsecured NCDs), was on Thursday oversubscribed by three times on the opening day.
Seeing the overwhelming response, the issue will be closed on Friday instead of the scheduled date of January 6.
According to the cumulative bid details, the issue size was oversubscribed 3.01 times at the end of bidding hours at 5 p.m. on Thursday. Overwhelming interest was shown by retail investors.
Anil Ambani-Controlled Reliance Capital’s wholly own subsidiary raised Rs 3,013 crore on the opening day after getting overwhelming response from investors.
The company planned to raise Rs 1,000 crore, as base issue size, by offering Secured NCDs and Unsecured NCDs at a face value of Rs 1,000 each with an option to retain oversubscription.
It also said the amount would be used for the purpose of onward lending, financing and for repayment or prepayment of interest and principal of existing borrowings and for general corporate purpose.
Secured NCDs offered for tenure of three, five and ten years at a coupon rate varying from 8.7-9.15 percent. Unsecured NCDs offered for a period 15 years with a call option after 10 years at coupon rates varying from 9.25-9.4 percent.
The secured NCDs were rated CARE AA+: Statble by Credit Anaalysis and Research Limited and BWR AA+ Outlook: Stable by Brickwork Ratings India Private Ltd. (IANS)