Aavas Financiers board okays raising funds of Rs 630-cr via NCDs; shares up: Aavas Financiers share price
Source: Business Standard
Aavas Financiers rises: Shares of housing finance company Aavas Financiers surged up to 2.93 per cent to hit an intraday high of Rs 1,867.30 per share on Thursday, September 19, 2024.
The rise in Aavas Financiers came after the company approved issuance of non-convertible debentures (NCDs) to raise Rs 630 crore. NCDs are a type of debt instrument used by companies and institutions to raise funds from the public or institutional investors.
In an exchange filing, the company said, “We wish to inform you that the Executive Committee of the Board of Directors of the Company at their Meeting held on September 18, 2024, inter-alia approved the issuance of up to 63,000 Rated, Listed, Senior, Unsubordinated, Secured, Transferable, Redeemable, Indian Rupee Denominated Non-Convertible Debentures (“NCDs”) having a face value of Rs 1 lakh each, aggregating up to an amount of Rs 630 crore on a Private Placement basis.”
The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE Limited, the company revealed.
The tenure of NCDs is 5 years from the Reference Date.
“Reference Date” being the date on which the subscription monies with respect to the NCDs is remitted by the debenture holders into the clearing corporation bank account, to be more particularly identified in the key information document (KID) to be issued in respect of the NCDs.
However, the maturity of the NCDs will be 5 years from the Reference Date (“Redemption Date”).
Aavas Financiers Limited is a housing finance company based in Jaipur, India, founded in 2011 as Au Housing Finance Limited.
It focuses on providing affordable loans to low- and middle-income customers, particularly in semi-urban and rural areas.
The company offers a range of products, including home loans for purchasing, constructing, repairing, or extending residential properties.
Aavas Financiers features competitive interest rates ranging from 10.50 per cent to 17 per cent per annum, with a maximum loan repayment period of up to 25 years.
The company charges a nominal processing fee of up to 2 per cent of the loan amount, plus GST, for each application.
Aavas Financiers operates in 14 states across India, including Rajasthan, Gujarat, Maharashtra, and Tamil Nadu, making it a key player in the housing finance sector.
At 12:02 PM, shares of Aavas Financiers were trading flat at 1814.05 per share. In comparison, BSE Sensex was trading 0.29 per cent higher at 83,187.10 levels.
First Published: Sep 19 2024 | 12:08 PM IST
