Reliance Home Finance's NCD issue subscribed 3 times on Day 1

Reliance Home Finance's maiden issue of non-convertible debentures was subscribed over three times on the first day today with overall subscription of more than Rs 3,000 crore.
The Rs 1,000-crore issue would close tomorrow itself, much ahead of the scheduled closing of January 6.
As per the combined data of BSE and NSE, the issue size was oversubscribed 3.01 times at the end of bidding at 1700 hrs today, generating demand worth Rs 3,012.91 crore.
The company received the huge subscription mainly on account of an overwhelming response from retail investors.
The money raised through the issue will be utilised for lending, financing, repayment of loans and general corporate purposes.

The company was planning to raise Rs 1,000 crore as base issue size by offering secured and unsecured non-convertible debentures (NCDs)at a face value of Rs 1,000 each with an option to retain over-subscription.

NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
A 100 per cent subsidiary of Reliance Capital, the company provides a wide range of loan solutions like home loans, loan against property and construction finance.
Edelweiss Financial Services, A K Capital Services, Axis Bank, Trust Investment Advisors and Yes Securities (India) Ltd are lead managers to the issue.

For the half year ended September 30, 2016, Reliance Home Finance disbursements were at Rs 3,342 crore and the assets under management were at Rs 9,383 crore.