Religare NCD issue oversubscribed 1.31 times
Mumbai: The non-convertible debenture (NCD) public issue of Religare Finvest had been oversubscribed 1.31 times till afternoon on the last day of its issue Thursday.
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 till afternoon, the NCD public issue of Religare Finvest has got subscribed 1.31 times.
However, the final figure would come later on the day.
Religare Finvest's NCDs, which opened on September 14, got bids worth Rs 328.07 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.
Market experts said that volatile conditions in the equity markets have also led to the companies tapping NCD route to raise funds. Besides, investors are getting attracted to good returns being offered in these NCD issues.
Investors are being offered returns of as high as 12 percent per annum through these NCDs.
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 26 per cent subscription, Srei Infrastructure Finance has managed to get only one per cent subscription.