Shares of AAVAS Financiers surged over 3 percent to Rs 1,871 per share on September 19 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.
So far this year, the stock of this housing finance company has surged 21 percent, beating benchmark Nifty 50's 16 percent surge. Earlier, AAVAS Financiers had hit 52-week high of Rs 1,978 per share on June 19, 2024.
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In an exchange filing, the company said that the board approved issuance of Rs 63,000 rated, listed, senior, unsubordinated, secured, transferable, redeemable, Indian rupee denominated NCDs having a face value of Rs 1 lakh each, aggregating to an amount of Rs 630 crore on a private placement basis.
The NCDs are planned to be listed on wholesale debt market of BSE. The tenure of NCDs is 5 years from the reference date, but the maturity date of these NCDs will be 5 years from their referance date.
Aavas Financiers 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. It operates in 14 states across India, including Rajasthan, Gujarat, Maharashtra, and Tamil Nadu, making it a key player in the housing finance sector.
Currently, around 18 brokerages cover AAVAS Financiers stock, with 14 analysts suggesting a 'buy' call on the stock, while 2 recommended a 'hold' call, and 2 shared a 'sell' rating.
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