D.S. Kulkarni Developers Limited NCD Issue opens on August 4, 2014

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By Kaushal Punatar Mob: 09920183006 Email: indianshowbusiness@gmail.com

 

Left to right: Mr. Suneel Ghatpande, Mr. Abhay Chaudhari (SBI Capital Markets), Mr. D. S. Kulkarni (Chairman), Mr. Praveen Parasnis and Mr. Vijaykumar Bagadandi announcing the launch of D. S. Kulkarni Developers Ltd.’s NCD issue…

• Effective Yields ranging from 13.1% p.a. to 13.52% p.a.

• Women Investors ( First Holder), DSK Employees Existing Equity Shareholders, Senior Citizen, Servicemen and Ex-Servicemen, shall be eligible for the additional coupon of 0.25% on the NCDs that is allotted to them under Option I, III and IV. For such investors, Effective Yields will be ranging from 13.37% p.a. to 13.8% p.a.

D. S. Kulkarni Developers Limited (the “Company” or “Issuer”) proposes to open on August 4, 2014, a public issue of secured redeemable Non-Convertible Debentures (“NCDs”) of face value of Rs. 5,000 each for Option I, II and IV; and Rs. 25,000 each for Option III aggregating upto Rs. 100 crore (with an option to retain oversubscription of an equal amount) aggregating up to Rs. 200 crore (“Overall Issue size”).

 

Mr. D. S. Kulkarni (Chairman) at the launch of the Company’s NCD issue

The minimum application amount is Rs. 25,000 across all options on NCDs and in multiples of One (1) NCD after the minimum application. Allotment is on a first-come-first-serve basis. Options of investment tenors are as follows: Option 1 – tenure of 36 months; quarterly interest payment); Option II – tenure of 66 months; and interest payment on maturity; Option III – tenure of 72 months and interest payable annually; Option IV – 84 months and interest payable annually. The coupon rate is 12.5% p.a. for Option I; 12.65% p.a. for Option III; & 12.75% p.a. for Option IV respectively. Effective yields are as follows: 13.1% p.a. for Option I; 13.43% p.a. for Option II; 12.65% for Option III; and 13.52% for Option IV.

Mr. Abhay Chaudhari (SBI Capital Markets), Mr. D. S. Kulkarni (Chairman) and Mr. Praveen Parasnis at the launch of the Company’s NCD issue

Valid applications by DSK Employees, Existing Equity Shareholders, Senior Citizen, Servicemen Ex-servicemen and Women (first holder), falling under any of the above three (3) categories shall be eligible for an additional coupon of 0.25% p.a. For such investors, the coupon rate is 12.75% p.a. for Option I; 12.90% p.a. for Option III; & 13% p.a. for Option IV respectively. Effective yields are as follows: 13.37% p.a. for Option I; 13.43% p.a. for Option II; 12.90% for Option III; and 13.80% for Option IV. Such investors are required to mention the appropriate sub category code provided in the application form and provide the requisite KYC documents, failing which, such additional coupon shall not be payable.

 

No tax will be deducted at source from the interest on listed NCDs held in the dematerialised form. However in case of Secured NCDs held in physical form, as per the current provisions of the I.T. Act, tax will not be deducted at source from interest payable on such Secured NCDs held by the investor (in case of resident individual Debenture Holders and Hindu Undivided Family), if such interest does not exceed Rs. 5,000 in any financial year and the interest is paid by an account payee cheque.

Category 1 of investors include amongst others Resident Public Financial Institutions, Co-operative Banks and Regional Rural Banks, Provident Funds, Venture Capital funds, Insurance Companies, National Investment Fund, Insurance funds and Mutual Funds.

 

Category II of investors include Educational institutions, Trust including Public/private charitable/religious trusts, Scientific or industrial research organizations, etc.

 

Category III of investors include amongst others Resident Indian individuals and Hindu Undivided Families through the Karta.

 

All non-ASBA applicants will be paid interest on application money on the amount allotted @7% per annum. The rate of interest on application money, which is liable to be refunded, will be @6% per annum. For further details, applicants may refer to Offer Document.

 

The NCDs proposed to be issued under the Issue have been rated ‘CARE BBB+’ by CARE for an amount of upto Rs. 200 crore by way of its letter dated July 14, 2014 which has been revalidated by its letter dated July 24, 2014. Instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.

The Company proposes to use the issue proceeds for Projects under development and general corporate purposes.

The NCDs are proposed to be listed on the Bombay Stock Exchange (“BSE”). The NCDs shall be listed within 12 working days of Issue Closure. Mode of Allotment is in dematerialised form with an option to allot NCDs in physical form on an Application made by an Applicant.

The Lead Manager to the issue is SBI Capital Markets Limited.

About D.S Kulkarni Developers Limited

D. S Kulkarni Developers Limited is one of the leading real estate development and construction companies primarily focusing on development of residential units in the city of Pune with presence in Mumbai, Bengaluru, Nasik and New Jersey, USA. The Company has also been accredited with ISO 9001:2008; ISO 14001: 2004 and OHSAS 18001:2007 issued by Zenith Quality Assessors Private Limited conforming the management system standards for (i) construction of Residential & Commercial building (including Design and Development); and (ii) Development and sale of plots. The Company has thirteen (13) Projects under Development spread across three (3) cities in India with 46,81,279.44 sq. ft. of estimated Approved Built-up Area and one (1) project outside India. The Company proposes to develop the DSK Dream City, an integrated township spread across 217.90 Acres of land at Pune-Sholapur road near Pune. The project is spread across several phases and includes residential apartments, commercial and retail space, facilities for various sports like tennis courts, cricket, football, athletics and sports stadiums. We intend to develop well designed dwelling units with modern features, amenities and facilities. We propose to set-up sports academies; build high street markets and malls. The DSK Dream City shall have within its precincts unique modes of transportation including new age trams for commuting citizens within the Dream City and water crafts on the waterways. A superspeciality hospital, convention centre, town hall & library are also being proposed to be set up. It plans to retain the governing, management and administration of the DSK Dream City after it is fully developed in order to maintain the safety, security and amenities originally provided by the Company. Four (4) exclusive zones are being proposed namely: Knowledge Centre, Leisure, Culture and Well-being.

 

The Company maintains in-house proficiency and expertise for every stage in a project development process, from the inception of the project, which includes identification of land parcels and conceptualization of the project to the execution of the project that involves planning, designing and overseeing the construction activities, culminating in property delivery, which involves interfacing marketing and sales team with customers.

 

The Company caters to the requirements of a wide variety of home buyers i.e. luxury or premium segment buyers to the mid income group home buyers. It develops high-end premium projects having one or more of the facilities viz. hi-tech gymnasium, exclusive swimming pool, walking plaza, beautiful landscape garden and parks, club house facilities and certain sports.

 

Since the year 2000, the Company has completed 26 projects which include residential and commercial projects. The completed projects include high-end residential apartments, mid-segment apartments as well as affordable housing projects. Some of the projects of D.S Kulkarni have also received awards such as the CNBC Awaaz Crisil Real Estate Awards 2007 for Best Consumer Protection Practices; Certificate of Merit by CWAB for being one of India’s Top 10 Builders at the Construction World Architect & Builder Awards 2013; Certificate of Merit for ‘Fastest growing real estate company – 2nd Rank’ at the Construction World – NICMAR Awards 2007, Mumbai; Best Residential Complex for Project ‘DSK Ranwara’ by AESA Award 2002.

D.S. Kulkarni Developers Limited (“Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations a Public Offer of NCDs under the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008, as amended Chapter (“SEBI Debt Regulations”) and has filed prospectus dated July 28, 2014 (“Prospectus”) with the Registrar of Companies (“RoC”). The Lead Manager to the Issue is SBI Capital Markets Limited (hereinafter referred to as the “LM”). This announcement does not constitute an offer to sell or solicitation of an offer or invitation to buy any securities in any jurisdiction. Investment in debt securities involves a degree of risk. Investors should see the Prospectus filed by the Company with the RoC, SEBI and BSE, including the section titled “Risk Factors”, available on the websites of the Company at www.dskdl.com; SEBI at www.sebi.gov.in, BSE at www.bseindia.com and the website of the LM at www.sbicaps.com.

 

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