Wealthy investors lead in Reliance Home Finance
Reliance Home Finance sold more than 85% of its Rs 3,500 crore maiden public bond issue on the first day as investors led by wealthy individuals snapped up the high-yielding securities amid a bearish interest rate outlook.
The company raised Rs 3,013 crore on the first day, with high net worth individuals bidding for more than their allotment, earmarked at 30% of the total issue size. Companies, scouting for high-yielding debt investments amid falling rates, also purchased the securities.
“We have seen encouraging response from investors amid a short-term gloom triggered by demonetisation and tighter interest rate environment,” said Ajay Manglunia, executive vice president at Edelweiss Finance. “Wealthy investors and corporates exhausted their full limits on day one, while retail and qualified institutional investors still have a tiny window to buy in the primary market. The issue may close for subscription on Friday with better-than-expected investor response.”