Shares of AAVAS Financiers jumped over 3% to Rs 1,871 per share on September 19 after the company’s board approved the issuance of non-convertible debentures (NCDs) to raise Rs 630 crore. NCDs are a debt instrument used by companies to raise funds from the public or institutional investors.
This year, AAVAS Financiers’ stock has risen 21%, outperforming the Nifty 50’s 16% gain. The stock hit a 52-week high of Rs 1,978 on June 19, 2024.
In an exchange filing, AAVAS Financiers said its board has cleared issue of 63,000 rated, listed, senior, un-subordinated, secured, and redeemable NCDs of face value of Rs 1 lakh each aggregating to Rs 630 crore on private placement basis. The NCDs will be issued on the Wholesale Debt Market of BSE and shall have maturity of 5 years.
AAVAS Financiers primarily focuses on providing affordable loans to low- and middle-income customers in semi-urban and rural areas. The products include home loans for purchasing property, construction, and renovation. Its operations are spread across 14 Indian states, such as Rajasthan, Gujarat, and Maharashtra, hence making it one of the leading players in housing finance.
Of the stock, 18 brokerages currently cover, 14 analysts recommend a ‘buy’, 2 advise a ‘hold,’ while 2 suggest a ‘sell’.
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Source: Moneycontrol
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