Dewan Housing Finance Corporation Ltd. (DHLF), is a deposit-taking housing finance company registered with the NHB and focused on providing financing products for the LMI segment in India primarily in Tier II and Tier III cities and towns. It has been active in the housing finance sector in India since 1984.
DHFL visited debt market in August 2016 with two NCD issues of Rs 1,000 crore and Rs 2,000 crore and mobilised Rs 4,000 crore and Rs 10,000 crore respectively expressing huge demand for its debt instruments. It is once again coming with a mega NCD offer now. The company is offering secured redeemable non-convertible debentures of Rs 1,000 each to mobilise Rs 3,000 crore under Tranche I with a green shoe option for retaining Rs 9,000 crore worth additional amount, making the total issue size of Rs 12, 000 crore. It offers coupon rates ranging from 8.56 per cent to 9.10 per cent with monthly/ annual interest payment modes as per the choice of investors. These NCDs have tenure of 3, 5, 7 and 10 years. Minimum investment is to be made for 10 NCDs (i.e. Rs 10, 000) and in multiples of 1 NCD (i.e. Rs 1, 000) thereon, thereafter. Retail investors can invest maximum up to Rs. 10 lakh. Issue opens for subscription on May 22, 2018 and will close on or before June 4, 2018. Company is going to allot these instruments on first come, first serve basis. Although application can be made for allotment in demat or physical mode, trading will take place only in demat mode. Post allotment, instruments will be listed on BSE and NSE. Funds raised through this offer will be used for onward lending, financing and repayment/prepayment of high cost debts.
The company is offering additional 1 per cent loyalty interest to all original allottees who will continue the scheme till maturity selected. Over and above this, an additional interest of 0.10 per cent is being offered to senior citizens. These instruments are rated CARE AAA/Stable by CARE and BWR AAA/Stable by Brickwork. Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations.
For the first time, these instruments are going to provide floating rate of interest for interest sensitive investors. It will be linked to overnight Benchmark MIBOR+ fixed spread of 2.16 per cent. These instruments will be under series VII NCDs and will have tenure of three years only with annual interest payment mode. Investors have option for nomination facility too.
