Religare Finvest: Raise Rs. 800 crores NCDs

Religare Finvest Limited (RFL), a systemically important non-deposit accepting Non-Banking Finance Company (NBFC) and a wholly owned subsidiary of Religare Enterprises Limited (REL), proposes to raise upto Rs. 800 crores (including base issue size upto Rs.400 crores with an option to retain over-subscription upto Rs. 400 crores) through public issue of Secured Redeemable Non Convertible Debentures (NCDs) of face value of Rs. 1,000 each.

The public issue is scheduled to open and close for subscription on Friday September 9, 2011 and Monday, September 26, 2011 (both days inclusive) respectively; with an option for early closure or extension by such period as  may be decided by the Board of RFL. Applicants of the NCDs will be allocated on first come first serve basis (determined on the basis of date of receipt of each application duly acknowledged by the Bankers to the Issue). The NCDs are proposed to be listed on BSE.

The net proceeds of the public issue (i.e.; after meeting the public issue related expenses) will be used for various financing activities including lending and investments, subject to applicable statutory and/or regulatory requirements, to repay its existing debt and towards its business operations including for capital expenditure and working capital requirements.

The NCDs proposed to be issued under this Issue have been rated ‘[ICRA] AA-(stable)’ by ICRA for an amount of up to Rs 1,000 crores vide its letter dated August 12, 2011 and ‘CARE AA-’ by CARE for an amount of upto Rs 800 crores vide its letter dated August 17, 2011. The rating of the NCDs by ICRA indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The rating of the NCDs by CARE indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The ratings provided by ICRA and/or CARE may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions.
A. K. Capital Services Limited, Axis Bank Limited, YES Bank Limited and Religare Capital Markets Limited are the Lead Managers to the issue, while Link Intime India Private Limited is the Registrar to the issue.

About Religare Finvest Limited (RFL):
RFL is a systemically important non-deposit accepting NBFC, focusing on small and medium enterprises (SME) and retail capital market financing. RFL offers a diversified and broad suite of lending products to its SME, retail and other customers. Through its reach and focus on the SME segment and their broad product offering, RFL provide the debt capital to power the growth of the small and medium enterprises, the back bone of India’s economy.
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