New Delhi: Reliance Home Finance’s maiden issue of non-convertible debentures saw robust response on the first day on Thursday with overall subscription worth nearly Rs4,000 crore.

The Rs1,000 crore issue would close on Friday itself, ahead of the scheduled closing of 6 January.

People in knowledge with the matter said the issue has been hugely oversubscribed and got subscription worth around Rs4,000 crore on the first day. The company received the huge subscription mainly on account of an overwhelming response from retail investors, they added.

Proceeds from the issue would be utilised for lending, financing, repayment of loans and general corporate purposes.

As per the combined data of BSE and NSE, the issue size was oversubscribed 3.01 times till 1700 hours on Thursday, generating demand worth Rs3,012.91 crore. The company was planning to raise Rs1,000 crore as base issue size by offering secured and unsecured non-convertible debentures (NCDs) at a face value of Rs1,000 each with an option to retain over-subscription.

NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.

A 100% subsidiary of Reliance Capital Ltd, the company provides a wide range of loan solutions like home loans, loan against property and construction finance. Edelweiss Financial Services Ltd, AK Capital Services Ltd, Axis Bank Ltd, Trust Investment Advisors and Yes Securities (India) Ltd are lead managers to the issue.

In the six months ended 30 September 2016, Reliance Home Finance’s disbursements stood at Rs3,342 crore and the assets under management were at Rs9,383 crore.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.