Indiabulls Housing Finance said its offer of non-convertible debentures — a kind of fixed deposit in the company — has generated total retail collection of Rs 807.8 cr.
Under the issue, the company was targeting to raise up to Rs 1,000 cr, including a ‘greenshoe’ option of Rs 800 cr that depended on demand.
The housing finance company has promised monthly, annual and end-of-term interest payments at the rate of 8.05% to 9.75% per year, depending on the tenure.
NCDs are considered good investments for those who are comfortable with the risk of the issuing company falling into financial difficulties. They typically carry about 50% higher interest than equivalent bank deposits.
“Overall, this Tranche I Issue has seen interest from investors across series and tenures offering annual, monthly, and cumulative interest options,” said IndiaBulls Housing Finance.
The Issue opened on September 6, 2021 and closed on September 20, 2021.
The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited.
The instruments are of two types — secured and unsecured. The secured NCDs come with no lock-in and can be sold by the investor to another person at any time.
The instruments have various tenures, ranging from 24 months to 36 months, 60 months and 87 months. The unsecured NCDs come with a tenure duration of 87 months and also carry a lock-in.
The highest return under the secured option is 9.25%, while the unsecured NCD carries an interest rate of 9.75%.
It is likely that not everyone who applied to invest may get a share of the issue, due to quotas and sub-quotas within each category.
“Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the stock exchange,” said Indiabulls Housing Finance. “However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis,” it added.