Wednesday, September 7, 2011

Religare Finvest NCD

Religare Finvest, a part of the Religare Financial Services Group which has its presence in India, Middle East, Africa, Europe and America has come out with a Non Convertible Debenture (NCD) issue to raise Rs 400 crores with an option of Rs 400 crore more in case of over subscription. Religare Financial Services specializes in broking, wealth and asset management, insurance, investment banking etc. and Religare Finvest focuses on small and medium enterprises (SME) finance and offers loan against securities, properties, commercial vehicle loans, construction equipment finance, etc. The company serves 27,000 customers and has net NPA of 0.02% till March 31, 2011 and has net worth Rs. 99,265 million.

Religare Finvest NCD issue shall open for subscription on 9 September and shall close on 26 September, 2011. The NCD will be alloted on a first come first serve basis.

Each Religare Finvest NCD is worth Rs 1000 and the minimum investment is 10 NCDs. There shall be no Tax deducted at source (TDS) on the interest component. NRIs can buy this issue on a non-repatriable basis.

This issue comes with two options:
Option 1: The interest rate for this option for 5 years is 12.50% which is the highest among all the recent NCDs.
Option 2: The interest rate for this option is 12.25% for three years.

The interest will be paid on April 1st of each year and the final interest will be paid at the time of maturity. 

Religare Finvest NCD has been rated as AA- Stable by the ICRA and AA- by CARE indicating that it is relatively stable to invest in this issue.

The registrars to this NCD issue is Link Intime and lead managers are AK Capital Services, Yes Bank, Religare, and Axis Bank Limited.

Click here to check Religare Finvest IPO Allotment status!
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