Religare Finvest Ltd is a wholly owned subsidiary of Religare Enterprises Limited ("REL") and a diversified financial services company. They are Non-Deposit Accepting NBFC, focussing on small and medium enterprises ("SME") financing and retail capital market financing.
Company's lending products aimed at providing financing to the SME segment include:
1. Loan against Property2. Loan against Commercial Assets3. Loan against Marketable Securities4. Loan against Plant & Machinery5. Unsecured Working capital finance
Retail capital market financing includes the following products:
1. Loan against Shares2. ESOP Funding
The company has two options under which a minimum of Rs. 10000 is to be invested. The face value of NCDs will be of Rs. 1000 each. Under option I, the NCDs will bear interest rate of 12.10% for category I, 12.25% for category II and 12.50% for category III and will have tenure of 60 months. Under option II the interest rates will be 12.00%, 12.15% and 12.25% respectively for the three categories and the tenure will be for a period of 36 months. Both these option have no put and call option attached.
Company Promoters:The promoter of the company is Religare Enterprises Limited
Objects of the Issue:The object of the issue are to:
1. Lending and investments;2. Repay the existing debt;3. Working capital requirements.
»» Issue Open: Sep 9, 2011 - Sep 26, 2011
»» Issue Type: Fixed Price Issue NCD
»» Issue Size: 8,000,000 NCD's of Rs. 1000
»» Issue Size: Rs. 800.00 Crore
»» Face Value: Rs. 1000 Per NCD
»» Issue Price: Rs. 1000 Per NCD
»» Market Lot:
»» Minimum Order Quantity:
»» Listing At: BSE
Religare Finvest NCD Rating
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Religare Finvest NCD Messages (Religare Finvest NCD Comments)
Issue opens on 9th Sep. Allotment on first come first serve basis. You can download online forms through https://www.religareonline.com/Campaign/ReligareFinvest/Home.aspx?WebType=CHL
There appears to be more than required interest in the NCD/BOND market (almost like 1995-97 era)--where NCD + FD market were flooded with high interest promising return instruments--which were followed by plethora of companies going bust cases, eg APPLE Finance, Llyods Finance, NICCO-UCO, Alpic etc)--these issues are similar to that --most of these issues will face very tough time in days to come (with Indian economic growth showing all signs of falling below 7% coupled with very high & sustained inflation + no productive capital growth by GoI + falling global growth)--the small & retail investors (lured by the extra interest now) will be the greatest hit--so better be cautious & avoid --regds
Will the allotment be done on First come first serve basis..?
When will these be listed on BSE?
Can we sell the same at the time of listing ?
Will the company do yearly payout of interest?
Can this list below face value ?
1. yes in this NCD its a First come first serve.
2. Post allocation and closure of issue will be listed on BSE there is a 30 days time from closure of issue, co do keep prviding information
3. its a Tradable bond but as is A debt instrument thus should not be looked as Equity.
4. yes it will be a yearly payout of intrest.
5. yes it can list below face value if market have week confidence on issuer or the issue.
is there any tax exemption ?
Healthcare and financial services major Religare Enterprises will infuse Rs 300 crore equity into Religare Finvest in the current fiscal to support the growth plans of its subsidiary, company officials said on Tuesday.
With an announcement of Rs 800 crore NCD (non-convertible debentures) issue, the total funds available to Religare Finvest for its loan activities would be Rs 1,100 crore.
The parent firm Religare Enterprises' is separately raising Rs 800 crore by way of a rights issue.
Of this, Rs 300 crore would be infused into its subsidiary, Religare Finvest Chief Executive Officer Kavi Arora said.
The parent company filed a draft red herring prospectus (DRHP) with the market regulator, SEBI in May, Religare Enterprise Director-Treasury Rashmi Mohanty told reporters here.
" Post-equity infusion, the paid-up capital of Religare Finvest will increase to Rs 2,000 crore," Arora said.
Religare Finvest, a non-banking finance company (NBFC) had extended a total loan Rs 9,926.54 crore by the end of first quarter of this fiscal. While SME lending accounted for 69 per cent of the loan book, 16 per cent was disbursed against shares as also consumer loans.
"We aim to grow our loan book by 35-40 per cent in the current fiscal," Arora said.
He also said that debt raising through NCD issue and proposed equity infusion would be sufficient to support business growth.
Referring to net interest margin (NIM) of the NBFC, he said that the company would like to maintain it around 4.5 per cent to 4.75 per cent in the near future.
"Though there is pressure on NIM due to rise in cost of borrowing, we expect to maintain the spread between cost of borrowing and yield on advances at 4.5 per cent to 4.75 per cent in the current fiscal," he said.
Religare Finvest, which has a presence in 48 cities in the country, has registered an operating income of Rs 1,073.61 crore and a net profit of Rs 114.77 crore in the last fiscal.