At the 5th trade show on September 19, 2024, shares of housing finance company Aavas Financiers rose 2.93% to an intraday high of Rs 1,867.30 per share following the company’s approval to issue bonds. Non-Convertible Deposit (NCD) to raise Rs 630 Crore, Aavas Financiers also saw an increase Companies and institutions use non-conforming dividend (NCD) tools to raise capital from institutional or general investors.
The company said in a filing with the stock exchange that above all else The Executive Committee of the Company’s Board of Directors has approved the issuance of INR 63,000 classified, registered, senior, senior, senior, secured, transferable, redeemable, non-currency convertible debentures (“NCDs”), nominal value of INR 1 Lakh per share, total offering value in Maximum limit is Rs 630 million per month. The meeting was held on September 18, 2018.
The company disclosed that it is proposing to place NCD in the Wholesale Dividend Market (WDM) segment of BSE Limited. NCD has a validity of five years as per the reference. The date on which the bonds deposit the NCDs subscription money into the clearing house’s bank account is called “Basic Information” This information will be included in a specific Basic Information Document (BID) that will be provided to NCD. But then five years from the reference (also known as NCD shall prevail). Aavas Financiers Limited was initially established as Au Housing Finance Limited in 2011 as a housing finance company based in Jaipur.