Sammaan Capital ₹300-crore NCD closes tomorrow; check interest rates, tenures & more

According to data available on the National Stock Exchange of India (NSE), the issue was subscribed 1.04 times on the exchange as of 2:00 pm on March 11. Bids were received for over 10.44 lakh bonds as against 10 lakh bonds on offer.

Sammaan Capital Ltd, formerly known as Indiabulls Housing Finance, had announced the launch of secured, redeemable NCDs worth ₹300 crore earlier in February. The public issue opened for subscription on February 27.

The base size of the issue was ₹100 crore, with a green shoe option of ₹200 crore. The NCDs were priced at ₹1,000 per unit, with a minimum investment required of 10 bonds, or ₹10,000.

Interest rates varied in the range of 8.88% to 10.75% per annum, with higher rates offered to retail investors (Categories III and IV). Multiple investment options with tenures ranging from 24 to 120 months were offered by the company for the NCD issue. Moreover, the debentures came with annual, monthly, and cumulative interest payment options.

The housing finance company plans to utilise the funds raised via the NCD issue for onward lending, financing and repayment of existing debts. A portion of the funds will also be used for general corporate purposes.

Sammaan Capital’s NCD issue had received ‘CRISIL AA/Stable’ and ‘[ICRA]AA (Stable)’ ratings. The debentures are to be listed on both BSE and NSE after allotment.

Nuvama Wealth Management Ltd, Elara Capital (India) Pvt. Ltd and Trust Investment Advisors Pvt. Ltd were the lead managers for the issue.

On Tuesday, equity shares of Samman Capital were trading at ₹110.9 apiece, down 0.9%, on the NSE at around 11:50 am. The stock has lost 19% in the past month and almost 34% in the last one year.

Incorporated in 2005, Sammaan Capital is a non-deposit-taking investment and credit company. It provides housing loans to a variety of customers like corporate individuals, self-employed people, MSMEs, and salaried individuals against leasing their properties. It also offers loans to Indian real estate developers for financing residential structures and lease rental discounting for commercial properties.