The first issue is to hit the market on the coming Wednesday, where the company plans to raise Rs 500 crore, with an option to retain over-subscription up to the shelf limit of Rs 3,000 crore. The tenures are three, five and seven years, with respective yields of 11 per cent, 11.25 per cent and 11.50 per cent annually for individual investors. Senior citizens are entitled to an additional 0.25 per cent annually across all tenures.
“Our lending would be Rs 2,000 crore per month and the second half would be much better. If we raise Rs 1,500 crore in this issue, then we might decide to close it before the closing date of July 22. For the remaining amount, we may come up with a second tranche. Depending upon the interest rate situation and the market, we will take a call for raising the remaining amount,” said Umesh Revankar, managing director.
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The NCDs bearing a fixed rate of interest are being offered under eight different series. The coupon rate is in the range of 11-11.50 per cent annually. The funds raised will be used for various activities, including lending and investments, to repay existing loans and business operations.
The issue has been rated AA/Stable by CRISIL, and AA+ by CARE Ratings and India Ratings. These indicate a high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The minimum investment amount is Rs 10,000. Half the issue is reserved for retail investors and the remaining for high net worth individuals, institutional and non-institutional investors.
The NCDs are proposed to be listed on the National Stock Exchange and the BSE exchange. JM Financial, AK Capital, Edelweiss Financial Services and ICICI Securities are the lead managers.