The secured non-convertible debentures (NCD) of JM Financial Credit Solutions Limited get overwhelming response on the very first day of its issue. The issuer has received applications of Rs.1,500 crore against an issue size of Rs.750 crore on May 28.
JM Financial Credit Solutions, the NBFC arm of the JM Financial group, provides integrated financial solutions to real estate developers working on residential projects. The company plans to raise Rs.300 crore through a public issue of NCDs with an option retain another Rs.450 crore. This means, the company can raise up to Rs.750 crore through this issue. The issue opens for subscription today and will close on June 20, 2018.
The company is offering bonds of varying maturities, ranging from 38 months to 120 months, and interest of 9.25% to 9.75 % (9.75% interest is offered only for NDCs having tenure of 120 months and annual interest option). Investors will have an option to receive the interest monthly or annually.
Other key features of the NCD are:
- The issue is rated [ICRA] AA/Stable by ICRA and IND AA/Stable by India Ratings
- Minimum application size is Rs.10,000
- No TDS applicable for NCDs held in dematerialized form
