Market mover, Reliance Home Finance NCDs oversubscribed

Reliance Home Finance, which came up with non-convertible debentures for the first time, has witnessed a robust response on the first day of its launch. The issue which was launched on December 22, was subscribed nearly worth Rs 4000 crore. Reliance Home Finance, the subsidiary of Reliance Capital intent is to raise Rs 1000 crore through the issue of NCDs, which are scheduled to close on January 6.As per the combined data of BSE and NSE, the issue size was oversubscribed 3.01 times till 17:00 hours on December 22.

Proceeds from the issue would be utilised for lending, financing, repayment of loans and general corporate purposes. NCDs are generally attractive as they are loan-linked bonds that cannot be converted into stocks, and which usually offer higher rate of interest than convertible debentures.

Meanwhile the stock of Reliance Capital which on December 23 opened up by Rs 3; as at 10.17 am is trading at Rs 436.75, marginally down by 0.79 per cent. Fifty-two-week high/ low of the scrip stands at Rs 595.70/303.60.