KFC mobilises 130 crore

KOCHI: Kerala Financial Corporation had seen its non-convertible debenture (NCD) issue of Rs 100 crore on December 8 getting subscribed within five working days of the date of opening of the issue.
Following this, the Corporation has decided to exercise the greenshoe option (oversubscribed shares) of retaining Rs 100 crore to give investors an opportunity to be part of its growth story, according to a KFC release on Monday.
In a single working day, the additional subscriptions crossed Rs 30 crore. The NCD issue which came out of Kerala after a gap of six years evoked good response from individuals, PF trusts, societies, corporations and institutions across India. The major Investments came in from Gujarat, Pune, Bangalore, Orissa, Jharkhand, Tamil Nadu and Kerala.
KFC had come out with the bond issue of Rs 100 crore with a greenshoe option of Rs 100 crores in the first week of December.
The bonds are in the nature of debentures and guaranteed by Kerala government. Further, they are redeemable, non-convertible and taxable. The face value of each bond will be Rs 10 lakh with an annualized yield of 10.23 per cent. The bond will have a maturity period of 10 years. However, Investors will have the option to redeem the bonds at 25 per cent annually from the fourth to seventh year. The bonds will be listed on the Bombay Stock Exchange (BSE). The bond issue closes on December 20, 2011.