Religare Finvest's Rs 800-crore bond issue to close tomorrow

MUMBAI: Non-banking finance company Religare Finvest today said its retail bond issue, through which it aims to raise Rs 800 crore, will close tomorrow.

Religare Finvest has decided to exercise its option to foreclose its secured redeemable non-convertible debentures (NCDs) issue tomorrow, the company informed the Bombay Stock Exchange opting for early closure.

The issue is originally slated to close on September 26, but the management decided to opt for an early closure tomorrow, its notification to the BSE said.

RFL, a fully-owned subsidiary of Religare Enterprises, hit the market with the issue of NCDs of Rs 1,000 face value each. The base issue size is Rs 400 crore, with an option to retain an additional Rs 400 crore. The NCDs are proposed to be listed on the BSE.

Market analyst Arun Kejriwal of KRIS, said Religare Finvest may price the bond between 12.40 and 12.6 per cent coupon rate, making it attractive for investors.

"This appears to be the peak rate and I do not see any other issue beating the rate," he said, adding that the Reserve Bank is likely to hike rates in its mid-quarterly review on September 16.

The net proceeds of the public issue will be used for various financing activities, including lending and investments, and business operations, including capital expenditure and working capital requirements.

Axis Bank, YES Bank and Religare Capital Markets Ltd are acting as the lead managers for the issue.

RFL offers loans to SMEs, retail and other customers.