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Dewan Housing Finance Corporation NCD Review

DHFL ncd analysis

Dewan Housing Finance Corporation, in short DHFL, has been providing affordable housing finance to millions of lower and middle-income families in semi-urban and rural India. The housing finance industries in India is growing rapidly. According to CRISIL Research, housing finance loans in India increased by 18.9%. Incorporated in the year 1984, Maharastra based company, engaged in providing reasonable home loans. Recently they are going to issue NCD (Non-Convertible Debenture). This content is about Dewan Housing Finance Corporation NCD Review, whether its good for investment or not. The issue details are listed below.

About DHFL-NCD Issue Details

  • Issue open on- May 22, 2018
  • The issue close on- Jun 4, 2018
  • Issue Type: Fixed Price Issue NCD
  • Face value: Rs 1000 per NCD
  • Issue size: 120,000,000 NCD’s of Rs. 1000
  • Issue size: Rs. 12,000.00 Crore
  • Issue price: Rs 1000 per NCD
  • Market lot: 10 NCD
  • Listing At: BSE, NSE
  • Minimum order quantity: 10 NCD
  • DRHP: Click here

Purpose of Issuing NCD

Before starting the review analysis of the NCD, it is important to discuss, what is their objective behind issuing NCD. Therefore, the purpose of issuing NCD are listed below:

  • If a company wants to raise its fund without raising its share capital, issue NCD (Non-Convertible Debenture)
  • Debenture holders get liquidity from the company, also get a higher interest rate than CD or Convertible Debenture.
  • Issuing NCD enhances a company’s corporate image, brand name.
  • A company can expand its business using this public fund, collected by NCD.

About DHFL

  • DHFL is deposit-taking housing finance company, registered with National Housing Bank, providing housing finance since 1984.
  • The company is engaged in distributing financing products to partnership firms, individuals and companies for self-construction, purchase, improvement, and extension for homes, new and resalable flats, land and commercial properties.
  • They have very strong and leading distribution network spread over 361 locations throughout India.
  • Along with this, DHFL has international representative offices too, located in London and Dubai.
  • DHFL is officially tie-ups with private and public sector banks, consisting of United Bank of India for eastern India, Dhanlaxmi Bank and Yes Bank Limited for pan-India, a leading public sector bank for central India.
  • The company believes in competitive strength for future growth.

Management Group

  • Chairman & Managing Director: Mr Kapil Wadhawan
  • Non- Executive director: Mr Dheeraj Wadhawan
  • Independent Director: Mr G. P. Kohli

Financial Information

Now, let’s come to one of the most crucial points of review analysis, the company’s financial information. A chart is listed below:

dhfl ncd
Dewan Housing Finance Corporation NCD Review

Dewan Housing Finance Corporation NCD Review:

This is some of the available data, received from the company’s financial statement.

dhfl data

From the statement, it is clearly viewed that it is a mid-cap company. DHFL has P/E ratio stands at 16.78 with face value Rs. 10. Besides this, BV/share or book value per share stands at 246.86. According to the draft prospectus, EPS stands at 37.18. Hence, overall Dewan Housing Finance Corporation NCD Review has a NEUTRAL view. Investors especially senior citizens can subscribe for a better return than fixed deposits (FD).

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