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Thursday, September 13, 2012

Religare Finvest to raise Rs 500 cr via NCDs; issue opens tomorrow

Religare Finvest, a wholly-owned NBFC subsidiary of Religare Enterprises, on Thursday said it is planning to raise up to Rs 500 crore through retail issuance of non-convertible debentures (NCDs) to support its financing activities.

The company will raise NCDs aggregating up to Rs 250 crore with an option to raise an equal amount in case of over-subscription, aggregating to a total of up to Rs 500 crore,” Religare Finvest Chief Executive Kavi Arora said here.

"The NCDs issue, which opens tomorrow for subscription, will have a coupon of 12.25 per cent for various tenors with yield ranging from 12.25 to 12.62 per cent per annum. The issue closes on September 27, 2012.

“The present NCD issue is part of our effort to diversify fund-raising programme of the company,” he said.

The proceeds of the issue would be used for its various financing activities, including lending and investments.

In addition, funds would be used to repay the company’s existing debt and to meet its capital expenditure and working capital requirements.

The NBFC raises around 65 per cent of its fund from banking sources and rest from capital market and through commercial papers (CPs).

On requirement of capital for the company, Arora said: “With a capital adequacy ratio of above 19 per cent, we are comfortable to take care of our growth plans till the end of this fiscal.”

Religare Finvest reported a net profit of Rs 137.8 crore in the last financial year and its loan book stood at Rs 12,573.5 crore.


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