DHFL raises Rs 10,000 crore
"This is a record collection to be allotted on the first day of opening of the issue by any private entity," said Ajay Manglunia, executive VP (fixed income) at Edelweiss Finance.
By Saikat Das, ET Bureau | Updated:
Mumbai: Top-rated Dewan Housing Finance has raised record sum on a single day by selling bonds through public issue. The bond sale, which opened for subscription on Monday, will allot Rs 10,000 crore to allot Rs 10,000 crore to investors, who app lied for Rs 12,645 crore securities collecti vely on the first day.
"This is a record collection to be allotted on the first day of opening of the issue by any private entity," Ajay Manglunia, executive VP (fixed income) at Edelweiss Finance, said. "Debt investors are now running after higher rates with safety inbuilt features like AAA and housing, which in turn, triggered a mad rush behind DHFL bonds across the country."
Total size of the issue was at Rs 10,000 crore, including Rs 2,000 crore core size. Four categories of investors including retail, high networth individuals, institutional and corporates have invested in DHFL bonds. But the retail segement, which is limited by an investment cap of up to Rs 10 lakh, fell short of being fully subscribed.
Barring corporates, each segment was allowed to invest up to 30% (or `3,000 crore) of the total issue size.
Wealthy and institutional investors have shown huge exuberance in subscribing to the securities as both segments have received bids more than double the allotted size.
“Investor response is a reflection of the government's focus on affordable housing,“ said Kapil Wadhawan, chairman and MD at DHFL.
"This is a record collection to be allotted on the first day of opening of the issue by any private entity," Ajay Manglunia, executive VP (fixed income) at Edelweiss Finance, said. "Debt investors are now running after higher rates with safety inbuilt features like AAA and housing, which in turn, triggered a mad rush behind DHFL bonds across the country."
Total size of the issue was at Rs 10,000 crore, including Rs 2,000 crore core size. Four categories of investors including retail, high networth individuals, institutional and corporates have invested in DHFL bonds. But the retail segement, which is limited by an investment cap of up to Rs 10 lakh, fell short of being fully subscribed.
Barring corporates, each segment was allowed to invest up to 30% (or `3,000 crore) of the total issue size.
Wealthy and institutional investors have shown huge exuberance in subscribing to the securities as both segments have received bids more than double the allotted size.
“Investor response is a reflection of the government's focus on affordable housing,“ said Kapil Wadhawan, chairman and MD at DHFL.
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