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Religare’s retail issue to pay between 12.00-12.50% to investors

Religare’s retail issue to pay between 12.00-12.50% to investors
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First Published: Tue, Sep 06 2011. 05 33 PM IST
Updated: Tue, Sep 06 2011. 05 33 PM IST
Mumbai: Religare Finvest, a unit of Religare Enterprises Ltd’s , retail bond issue that opens Friday, will pay a coupon between 12% to 12.50% to various categories of investors.
The company said it intends to temporarily invest the funds in money market mutual funds, deposits with banks or temporarily deploy the funds in investment grade securities or inter corporate loans.
The issue has a core size of Rs 400 crore with an option to retain an additional Rs 400 crore and the non-banking finance company is looking for funds in the three- and five-year tenures.
There are three categories of investors, according to the prospectus.
The first category, which includes provident funds and pension funds, will be paid 12.10% for five-year bonds and 12% for three-year bonds.
The five-year investment option will pay a coupon of 12.25% and the three-year will pay 12.15% for the second category of investors, which includes companies and individuals investing over Rs 500,000 .
Retail investors, investing less than Rs 500,000 , will be paid 12.50% for investment in five-year bonds and 12.25% for investment in three-year bonds.
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First Published: Tue, Sep 06 2011. 05 33 PM IST