Reliance Capital raises Rs. 2,000 Crore through Private Placement

Reliance Capital, a part of Anil-Ambani led Reliance Group, has announced completion of a fund raising exercise of Rs 2,000 crore (US$ 300 million) through private placement of secured redeemable Non-Convertible Debentures (NCD) for a period of 5 years and 10 years respectively.

The issue size offered was Rs 1,000 crore (US$ 150 million) with an option to retain oversubscription, by way of greenshoe option, of upto Rs 1,000 crore (US$ 150 million). The issue was fully subscribed, including the greenshoe option, and will be listed on BSE.

"The funds will be used to refinance our existing debt and also grow our lending businesses. Our debt equity remains at a conservative 1.7, amongst the lowest in the NBFC sector. We will continue to maintain a healthy asset liability mix, and provide optimally priced funds for our high growth lending businesses," said Mr Sam Ghosh, ED and Group CEO, Reliance Capital.

The secured redeemable NCDs offer an annual coupon rate of 8.9 per cent for 5 years, and 9 per cent for 10 years.

The issue was rated AAA by two rating agencies - Credit Analysis and Research Limited (CARE) and Brickwork Ratings India Private Limited.

Shares of RELIANCE CAPITAL LTD. was last trading in BSE at Rs.558 as compared to the previous close of Rs. 544.6. The total number of shares traded during the day was 537469 in over 10293 trades.

The stock hit an intraday high of Rs. 560.85 and intraday low of 545.5. The net turnover during the day was Rs. 298001961.

Source : Equity Bulls

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