Reliance Capital (RCap), a unit of the Anil Ambani-led Reliance Group, has raised about ~2,000 crore through non-convertible debentures.
The finance company will use the proceeds to refinance debt and grow its lending business. The debt-to-equity ratio remains at a conservative 1.7, among the lowest in the non-banking finance sector.
Sam Ghosh, executive director and group chief executive director, said the finance company would continue to maintain a healthy asset-liability mix, and provide optimally priced funds for high-growth lending businesses.
RCap has raised ~3,000 crore till date in the current financial year. The benefit of softening of interest rates in the market is about 30 basis points.
The issue size offered was ~1,000 crore with an option to retain oversubscription, by way of a greenshoe option, up to ~1,000 crore. The issue was fully subscribed, including the greenshoe option.
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The five-year debentures carry an annual coupon of 8.9 per cent, while it is nine per cent for the 10-year paper.
The debentures will be listed on the BSE. The issue was rated AAA by two rating agencies — Credit Analysis and Research Limited (CARE) and Brickwork Ratings India
The company posted a consolidated net profit of ~207 crore for the quarter ended June 30, 2016, up from ~201 crore in the quarter ended June 30, 2015. Its total income for the period under review was ~3,663 crore up from ~2,470 crore for the corresponding period in FY16.
According to the company, its total net worth as on June 30, 2016, stood at ~15,634 crore, registering an increase of 13 per cent year-on-year (y-o-y). As of June 30, 2016, the company's total assets stood at ~69,356 crore — an increase of 40 per cent y-o-y.