J M Financial Credit Solutions raises Rs 750 cr via NCDs

Non-bank lender J M Financial Credit Solutions today said it has raised Rs 750 crore through an NCD issue, which was oversubscribed by 2.23 times.

As against the original target of Rs 750 crore, including the Rs 450 crore greenshoe option, the city-based company got commitments of Rs 1,676 crore, it said in a statement.

Retail and high net individuals alone accounted for Rs 1,473 crore of the subscriptions, the company statement said.

Company chief executive Shashwat Belapurkar said the fund raising by the wholesale focused NBFC is a testimony to the changes in the real estate landscape and will help deepen the debt markets.

In a note yesterday, domestic ratings agency Icra had said that it expects retail bond issuances by NBFCs to go up by four times to Rs 20,000 crore tighter liquidity conditions and rising bond yields.

"The oversubscription of over 3.6 times in the Retail Investors category justifies our higher proportion of 30 percent allocation ratio to Retail Investors in the basis of allotment," Belapurkar said.

Institutions, which were allotted 20 percent of issue, subscribed to only 37 percent of the issue, while subscriptions by corporates stood at 99 percent, the company statement said.