Shares of AAVAS Financiers surged by over 3% to ₹1,871 on September 19 after the company announced its plan to issue non-convertible debentures (NCDs) worth ₹630 crore. The housing finance company's board approved the issuance of 63,000 rated, listed, secured, and redeemable NCDs, with each NCD having a face value of ₹1 lakh. The tenure for these NCDs is set at five years, and they will be listed on the wholesale debt market of the Bombay Stock Exchange (BSE).
This move comes after a year of strong stock performance, with AAVAS Financiers' shares rising by 21%, outperforming the Nifty 50 index, which has seen a 16% increase in the same period. The company had previously hit a 52-week high of ₹1,978 on June 19, 2024.
What is an NCD, and why does it matter?
Non-convertible debentures (NCDs) are debt instruments that companies use to raise capital without giving up equity. In the case of AAVAS Financiers, these NCDs will help the company generate ₹630 crore on a private placement basis. NCDs are attractive to institutional and retail investors as they typically offer higher returns than fixed deposits while still being relatively secure.
If you're following AAVAS Financiers, this may be a good time to consider whether to buy shares online. With a solid performance and strong backing from analysts, the company is becoming an attractive proposition for those looking to diversify their portfolios.
Analysts' take on AAVAS Financiers
Currently, 18 brokerages cover AAVAS Financiers, with 14 recommending a 'buy' call on the stock. The company's focus on providing affordable loans in semi-urban and rural areas has made it a key player in India's housing finance market. As you look for opportunities to buy shares online, keep in mind AAVAS Financiers' strong track record and strategic positioning in the affordable housing space.
Key takeaways
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