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Religare Finvest Ltd (RFL), a non-banking finance company focused on SME lending, plans to raise Rs 250 crore through Non-Convertible Debenture (NCD) issue next week, its Chief Executive Officer Kavi Arora has said. There will also be a green shoe option of Rs 250 crore, making the total size of the issue Rs 500 crore.
RFL is a wholly-owned subsidiary of Religare Enterprises, which is a listed entity and holding company of the Religare Group.
The fully secured NCD issue has received the SEBI nod recently and the company will begin roadshows early next week, Kavi Arora said.
Investment Options
Investors will have an option to buy NCDs with a tenure of three years or five years. The coupon rates for the NCDs will be decided in the next few days, the CEO said.
The NCDs will be listed on the NSE and the BSE.The company had mopped up close to Rs 750 crore through an NCD issue, around this time last year.
On whether RFL will list its shares, Arora said listing is still couple of years away.
RFL is quite well capitalised for now and has a capital adequacy ratio of 18 per cent. There is enough headroom to grow the business, he said.
In 2011-12, about Rs 350 crore of private equity funds got deployed in RFL, adding to the financial strength of the company.
RFL’s loan book grew 40.22 per cent in 2011-12. For the current financial year, the company is eyeing loan book growth of 18-20 per cent, according to the CEO.
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