DHFL bond issue subscribed for up to Rs 10,000 crore on Day 1

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NEW DELHI: Housing finance company DHFL Ltd garnered subscriptions of over Rs 10,234 crore on Day one of the public issue of the bonds on Tuesday.

The company has a target to raise up to Rs 12,000 crore from this public issue of non-convertible debentures (NCDs) with a base size of Rs 3,000 crore and green-shoe option up to Rs 9,000 crore.

“DHFL NCDs attract subscription of over Rs 10,000 crore on Day 1 out of a total of around Rs 12,000 crore – HNIs (high net-worth individuals) and retail account for around Rs 2,800 crore and QIBs (qualified institutional buyers) for over Rs 7,200 crore,” sources said.

Earlier on Monday, the company said the issue — which is to close on June 4 — can be pre-closed if the issue is fully subscribed before that.

DHFL will use 75 per cent of the proceeds raised from the issue for sub-lending and business growth while the rest is slated to be used for general corporate purpose.

Stock of Dewan Housing Finance Ltd (DHFL) closed 0.93 per cent down at Rs 607.30 on the BSE.