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For the retail investors looking for attractive returns from debt investments, Dewan Housing Finance Corporation Limited (DHFL) is coming up with public issue of  secured redeemable non-convertible debentures (NCDs) offering up to 9.1 percent return. 

The private housing finance company on Tuesday will open its public issue of up to 12 crore secured redeemable non-convertible debentures (NCDs) with a face value of Rs 1,000 each. The base size of the issue is Rs 3,000 crore. The issue is scheduled to be closed on 4 June. Nearly 75 percent of the net proceeds of the Public Issue of NCDs will be diverted for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the company which stands at Rs 92,000 crore. A maximum of up to 25 percent will be used by the private sector housing finance company used for general corporate purposes.

Tenure and Interest rates

The company is offering attractive interest rate of up to 9.10 percent per annum, one-time additional incentive of up to 1.00 percent to initial subscribers on maturity and an additional interest of 0.10 percent per annum for senior citizens. The debentures are available for tenure of 3,5,7 and 10 years.

Rating

The NCDs have been rated CARE AAA and BWR AAA. They are stable for an amount up to Rs 15,000 crore by CARE Ratings and Brickwork Ratings India.

Minimum investment

The minimum application amount is Rs 10,000 collectively across all options on NCDs and in multiples of one.

Interest on application money

7.50%

Interest on refund money

5%

Additional feature

50 bps extra coupon rate (one time) for 5 year tenor (monthly, annual) will be paid in the last instalment.

Issuance

The debentures are available in both physical and demat form.

Greenshoe option

DHFL has an option to retain oversubscription (greenshoe) of up to Rs 9,000 crore, thus aggregating the size up to Rs 12,000 crore.

Last modified on Monday, 21 May 2018

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