DHFL inflates as it issues unsecured debentures

DHFL,(Dewan Housing Finance Corporation Limited) on Aug 18 is largely in the news. Scrip of the company as at 12.11 pm is trading at Rs 268.30, up by 1.65 per cent. In the last 3 months, shares have given a return of 5 per cent. 52-week High/Low of the company stands at Rs 270/141.

Stock has surged as the company has issued unsecured subordinated perpetual non-convertible debentures amounting to Rs 200 crore along with a green shoe option upto Rs. 275 crores; and secured redeemable non-convertible debentures amounting to Rs 140 crore along with a green shoe option of upto Rs 10 crore on a private placement basis.

On the other hand, on Aug 17, company has informed BSE that Credit Analysis and Research Limited (‘CARE Ratings’) has reaffirmed its ratings of CARE AAA and has enhanced the amount from Rs 4000 crores to Rs 14000 crores, which covers the company’s proposed public issue of secured redeemable non-convertible debentures of up to Rs 2,000 crores along with a green shoe option of upto Rs 8,000 crores (“NCD Issue”), in one or more tranches, as approved by the board of directors. Brickwork Ratings India Private Limited (‘Brickwork Ratings’) has also reaffirmed its ratings of BWR AAA (pronounced as BWR Triple A), with the Outlook being Stable, for the said NCD issue.

Dewan Housing Finance Limited is an Indian housing finance company. Its business objective is to provide access to housing finance or loans to lower and middle income Indians. The products and services of the company include home loans, loans for the self-employed, home loans for NRIs and plot loans.