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DHFL gains on plan of raising Rs 10,000 crore to fund business growth

26 Aug 2016 Evaluate

Dewan Housing Finance Corporation (DHFL) is currently trading at Rs. 282.20, up by 1.85 points or 0.66% from its previous closing of Rs. 280.35 on the BSE.

The scrip opened at Rs. 281.90 and has touched a high and low of Rs. 285.50 and Rs. 281.65 respectively. So far 97190 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 285.50 on 26-Aug-2016 and a 52 week low of Rs. 140.55 on 12-Feb-2016.

Last one week high and low of the scrip stood at Rs. 284.00 and Rs. 260.65 respectively. The current market cap of the company is Rs. 8278.31 crore.

The promoters holding in the company stood at 34.89%, while institutions and non-institutions held 34.79% and 30.32% respectively.

Mortgage firm, DHFL is planning to raise Rs 10,000 crore from non-convertible debentures (NCDs) to fund business growth. The NCD issue of face value of Rs 1,000 each with a base issue size of Rs 2,000 crore and an option to retain oversubscription of up to Rs 8,000 crore aggregating up to Rs 10,000 crore opens on August 29.

The issue will have tenor of 7-year with annual frequency of interest payment. The interest rate on proposed NCDs will vary between 9.05% - 9.25%. Retail individual investors and High Net worth Individuals (HNIs) have a combined allocation ratio of 60%. Interest on application money is at 8% and interest on refunded money is at 6%.

Dewan Housing Finance Corporation is among the oldest private sector Housing Finance Companies (HFC) in India.

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