Mortgage lender Dewan Housing Finance Corporation’s issue of non-convertible debentures worth up to Rs 10,000 crore was entirely subscribed today on the first day of the issue itself. According to the latest updates available with the National Stock Exchange (NSE), the issue was oversubscribed by 3.32 times till 1 pm.
Although the NCDs did well in the market, still DHFL share price closed with a drop of 0.88% in today’s trade.
DHFL’s issue encompasses Rs 2,000 crore, with an option to hold oversubscription up to Rs 8,000 crore aggregating up to a shelf limit of up to Rs 10,000 crore. Bidding for the issue opened today and will close on September 12. Net proceeds of the issue will be utilized for funding loan growth.
This was the second NCD issue by the company. The mortgage lender’s first issue was opened earlier this month. That issue was subscribed nearly 19 times on its first day with an overall subscription of about Rs 19,000 crore. DHFL’s first NCD issue comprised Rs 1,000 crore with a choice to hold oversubscription of up to Rs 3,000 crore, aggregating a shelf limit of Rs 4,000 crore. Meanwhile, DHFL share price closed at Rs. 280.40.
The follow-on secured NCD issue has 7-year tenure with the yearly frequency of interest payment. The interest rate on proposed NCDs varies between 9.05 per cent and 9.25 per cent. Retail individual investors and High Net Worth Individuals (HNIs) have a combined allotment ratio of 60 per cent. Edelweiss Financial Services, A K Capital Services, ICICI Bank, SBI Capital Markets, Trust Investment Advisors, Yes Securities, Axis Bank, IndusInd Bank and IIFL Holdings are the lead managers to the issue.
DHFL is in the top 500 performing shares list of Dynamic Levels. The closest support level for the stock is Rs. 277.85. For more details on the support and resistance levels, visit DHFL share price forecast page of Dynamic Levels website.
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