Intimation for Allotment of Non-Convertible Debentures by Executive Committee of Board of Directors of the Company
Awaiting price reaction for this filing.
Aavas Financiers has allotted 20,000 Senior, Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) of face value Rs. 1,00,000 each, aggregating to Rs. 200 crore. The NCDs were issued in two series — Series A (Rs. 100 crore) and Series B (Rs. 100 crore) — each split into Anchor (3,000 NCDs at par) and Non-Anchor (7,000 NCDs at a small premium of Rs. 280 and Rs. 390 per NCD respectively). Total money received is Rs. 200.47 crore including a premium of Rs. 46.9 lakh. The debentures carry coupon rates of 8.15% (Series A) and 8.11% (Series B) payable annually, have a tenor of nearly 5 years (maturing April 26, 2030), and are secured by a first charge on the company's loan receivables. The NCDs will be listed on the BSE Wholesale Debt Market.
This Rs. 200 crore NCD raise strengthens Aavas's lending capital at a moderate cost (~8% coupon), which is typical for housing finance companies funding loan growth. Minor dilution to equity is avoided since these are debt instruments, but existing shareholders should note the company is adding to its interest obligations over the next 5 years.