Religare Finvest's NCD issue over-subscribed 1.36 times

MUMBAI: Religare Finvest's non-convertible debenture (NCD) public issue was over-subscribed by 1.36 times on the final day of the issue today.

An NCD is a type of loan-linked security issued by a company that cannot be converted into stock and usually carries a higher interest rate than a convertible debenture.

As per the data available with the stock exchanges, the NCD public issue of Religare Finvest got subscribed 1.36 times. The NCD, which opened on September 14, attracted bids worth Rs 340.18 crore, as against Rs 250 crore on offer.

The company is raising Rs 250 crore each, but has kept the options open to retain Rs 250 crore each in case of over-subscription of the issues.

Experts said that Religare Finvest's NCDs have recieved overwhelming response from all categories of investors.

"Volatile conditions in the equity markets have led to the companies tapping NCD route to raise funds. Besides, investors are getting attracted to good returns being offered in these NCD issues," a borker said.

Investors are being offered returns of as high as 12 per cent per annum through these NCDs.

Religare Finvest's NCD got subscription of 2.11 times from category 1 investors that includes financial institutions, statutory corporations and commercial banks, as per data available till yesterday with the exchanges.

It had also received subscription of 1.44 times from Category II investors including various companies and trusts among others and 1.52 times from individual investors, it added.

Two more NCD issues -- of gold financing company Muthoot Finance and infrastructure funding entity Srei Infrastructure Finance -- are also currently open for bidding, but the demand has been relatively lacklustre so far.

While NCDs of Muthoot Finance have received only 28 per cent subscription, Srei Infrastructure Finance has managed to get only one per cent subscription.