RELIANCEHOMEFINANCELIMITED

PublicIssueofSecuredandUnsecuredRedeemableNon-ConvertibleDebenture

LeadManager: EdelweissFinancialServicesLtd.

Others

Registrar:KarvyComputersharePrivateLimitedIssueSize: `3,500 crores i.e.upto`3,000 crores

ForSecuredNCDsandupto`500croresfor Un-SecuredNCDsaggregatingupto

`3,500crores.

ChequeinFavourof: ‘RHFLNCDEscrowAccount’.

IssueBreakup:

TotalIssueSize(AmtinCrs)withGreenShoeOption
Category / Allocation
Secured / Unsecured / ShelfLimit
QIB / 30% / 900 / 150 / 1050
Corporate / 10% / 300 / 50 / 350
HNI / 30% / 900 / 150 / 1050
Retail / 30% / 150
900 / 1050
Total / 100% / 3000 / 500 / 3500

NRI’sarenotallowedtoInvest

EffectiveYield(p.a.):

Series / I / II / III / IV
Tenor / 3Years / 5Years / 10Years / 15Years*
NatureofInstrument / Secured / Secured / Secured / Un‐Secured
FrequencyofInterestPayment / Annual / Annual / Annual / Annual
CategoryIII(QIBCorporate) / 8.70% / 8.90% / 9.00% / 9.25%
CategoryIIICategoryIV(HNIRetail) / 8.90% / 9.05% / 9.15% / 9.40%

RelianceHousingFinanceLimited;anon-deposittakinghousingfinancecompanyregisteredwiththeNHBandfocusedonprovidingfinancingproductsfortheLMItoHMIsegmentinIndia,primarilyinTierIIandTierIIIcitiesandtownsandfocusedontheself-employed.IthasbeenactiveinthehousingfinancesectorinIndiasince2009.ItisawhollyownedsubsidiaryofRelianceCapitalLimited,thefinancialservicesCompanyoftheRelianceGroup.

TheCompanyisapartoftheRelianceGroupwhichisoneofIndia’sprominentprivatesectorbusinesshousesservingover2,500lakhcustomersacrosstelecommunications,power,financialservices,infrastructure,mediaandentertainment,andhealthcaresectors.ItsPromoter,RCLhasinterestsinassetmanagementandmutualfunds;lifeandgeneralinsurance;commercialandhomefinance;equitiesand commoditiesbroking;wealthmanagementservices;distributionoffinancialproducts;assetreconstruction;proprietaryinvestmentsandotheractivitiesinfinancialservices.RCLisaconstituentofCNXNiftyJuniorandMSCIGlobalSmallCapIndexandislistedonNSEandBSE.

The Companyalsohasrobustmarketinganddistributionnetwork, withapresenceacross100locationsthrough 43 branches,throughoutIndiaasatSeptember30,2016.Itsbranchesaimsatprovidingafastandseamlesscustomerexperiencewithemphasisonasinglewindowinterfaceforthecustomer.

PRODUCTNOTE – NCD

COMMONTERMSFORALLSERIESOFTHENCDs

IssuerRelianceHomeFinanceLimited

TypeofInstrumentSecuredRedeemableNon-ConvertibleDebenturesandUn-SecuredRedeemableNon-ConvertibleDebenturesinthenatureofSubordinatedDebtandeligibleforinclusionasUpperTierIIcapital

BaseIssueSize`1, 00,000lakhs

OptiontoretainOversubscriptionAmount

UptotheShelfLimit,i.e.anamountupto`3, 00,000lakhsforSecuredNCDsandupto`50,000lakhsforUn-SecuredNCDsaggregatingupto`3, 50,000lakhs

ModeofIssuePublicIssue

MinimumApplicationSizeandinmultiples

CreditRating/RatingoftheInstrument

Put/CallOption

₹10,000(10NCDs)collectivelyacrossallSeriesandinmultipleof`1,000(1NCD)thereafteracrossallSeries

TheSecuredNCDsproposedtobeissuedunderthisIssuehavebeenrated‘CAREAA+;Stable(DoubleAplus;Outlook:Stable)’foranamountof`3,00,000lakhs,byCAREvidetheirletterdatedOctober13,2016(validatedasonDecember7,2016)andBWRAA+(PronouncedasBWRDoubleAPlus)Outlook:Stableforanamountof`3,00,000lakhs,byBrickworkvidetheirletterdatedOctober25,2016(validatedasonDecember6,2016).TheratingofCAREAA+byCAREandBWRAA+,Outlook:StablebyBrickworkindicatesthatinstrumentswiththisratingareconsideredtohavehighdegreeofsafetyregardingtimelyservicingoffinancialobligations.Suchinstrumentscarryverylowcreditrisk.The Un-SecuredNCDsproposedtobeissuedunderthisIssuehavebeenrated‘CAREAA(DoubleA)’foranamountof`50,000lakhs,byCAREvidetheirletterdatedNovember8,2016(validatedasonDecember7,2016)andBWRAA(PronouncedasBWRDoubleA)Outlook:Stableforanamountof`50,000lakhs,byBrickworkvidetheirletterdatedOctober4,2016(validatedasonDecember6,2016).TheratingofCAREAAbyCAREandBWRAA,Outlook:StablebyBrickworkindicatesthatinstrumentswiththisratingareconsideredtohavehighdegreeofsafetyregardingtimelyservicingoffinancialobligations.Suchinstrumentscarryverylowcreditrisk.

TherearenoputoptionsavailableforSecuredNCDsandUn-SecuredNCDs.ThereisnocalloptionavailableforSecuredNCDs

IncaseofUn-SecuredNCDs,calloptionmaybeexercisedonlyafter10yearsfromthedeemeddateofallotment,withthepriorapprovalofNHBandintermsofSEBIDebtRegulations.

Issuancemode*Physicalanddemat*

ThedateonwhichtheBoardofDirectorsortheNCDCommitteeapprovestheAllotmentoftheNCDsfor

DeemedDateofAllotment

InterestonApplicationAmount

ThisTranche1IssueorsuchdateasmaybedeterminedbytheBoardofDirectorsortheNCDCommitteeandnotifiedtotheDesignatedStockExchange.TheactualAllotmentofNCDsmaytakeplaceonadateotherthantheDeemedDateofAllotment.AllbenefitsrelatingtotheNCDsincludinginterestonNCDsshallbeavailabletotheDebentureholdersfromtheDeemedDateofAllotment

TheCompanyshallpayinterestonapplicationamountagainstwhichNCDsareallottedtotheApplicants,otherthantoASBAApplicants,subjecttodeductionofincometaxundertheprovisionsoftheIncomeTaxAct,1961,asamended,asapplicable,fromthedateofrealizationofthecheque(s)/demanddraft(s)up toonedaypriortotheDeemedDateofAllotmentatattherateof8.00%p.a.Intheeventthatsuchdateofrealizationofthecheque(s)/demanddraft(s)isnotascertainableintermsofbankingrecords,weshallpayinterestonApplicationAmountsontheamountAllottedfromthreeWorkingDaysfromthedateofuploadofeachApplicationontheelectronicApplicationplatformoftheStockExchangesup toonedaypriortotheDeemedDateofAllotment.

Ataxdeductioncertificatewillbeissuedfortheamountofincometaxsodeducted

PRODUCTNOTE – NCD

Interestonapplicationamountsreceivedwhichareliabletoberefunded:

TheCompanyshallpayintereston applicationamount,onallvalidapplications,whichisliabletoberefundedtotheApplicants(otherthanApplicationAmountsreceivedaftertheTranche1IssueClosureDate,andASBAApplicants)pursuanttotheTranche1Issueattherateof5.50%p.a.,subjecttodeductionofincometax undertheprovisionsoftheIncomeTaxAct,1961,asamended, as applicable, to theApplicantswhoseValidApplicationsreceive(i)partialallotmentduetooversubscriptionor(ii)noallotmentduetooversubscriptionpursuanttothisTranche1Issuefromthedateof realization of thecheque(s)/demanddraft(s)up toonedaypriortotheDeemedDateofAllotment.Intheeventthatsuchdateofrealizationofthecheque(s)/demanddraft(s)isnotascertainableintermsofbankingrecords,weshallpayinterestonApplicationAmountsontheamountAllottedfromthreeWorkingDaysfromthedateofuploadofeachApplicationontheelectronicApplicationplatformoftheStockExchangesuptoonedaypriortotheDeemedDateofAllotment.Suchinterestshallbepaidalongwiththemoniesliabletoberefunded.Interestwarrantwillbedispatched/credited(incaseofelectronicpayment)alongwiththeLetter(s)ofAllotment/Letter(s)ofRefundatthesoleriskoftheApplicant,tothesole/firstApplicant.

IssueOpeningDateThursday,December22,2016

IssueClosingDate**Friday,January6,2017

15(fifteen)dayspriortotherelevantinterestpaymentdate,relevantRedemptionDateforNCDsissuedunderthisTranche1Prospectus.IncaseofredemptionofNCDs,thetradingintheNCDsshallremainsuspendedbetweentherecorddateandthedateofredemption.IneventtheRecordDatefallsona

SundayorholidayofDepositories,thesucceedingworkingdayoradatenotifiedbytheCompanytothe

RecordDate

stockexchangesshallbeconsideredasRecordDate.

However,recorddateforthepurposeofexerciseofcalloption,ifany,shallbeasreferredtointhe“TermsoftheIssue-Put/CallOptioninrelationtoUn-SecuredNCDHolders”onpage43ofTrancheProspectus

Series / I / II / III / IV
FrequencyofInterestPayment / Annual / Annual / Annual / Annual
NatureofInstrument / Secured / Secured / Secured / Un‐Secured
MinimumApplication / `10,000(10NCDs)acrossallSeriescollectively
InMultiplesofthereafter / `1,000(1NCD)
FaceValueofNCDs(`/NCD) / `1,000
IssuePrice(`/NCD) / `1,000
ModeofInterestPayment / Throughvariousoptionsavailable
Tenor / 3years / 5years / 10years / 15years
Coupon(%)forNCDHoldersinCategoryICategoryII / 8.70 / 8.90 / 9.00 / 9.25*
Coupon(%)forNCDholdersinCategoryIIIandCategoryIV / 8.90 / 9.05 / 9.15 / 9.40*
EffectiveYield(perannum)forNCDHoldersinCategoryICategoryII / 8.70 / 8.90 / 9.00 / 9.25
EffectiveYield(perannum)forNCDHoldersinCategoryIIICategoryIV / 8.90 / 9.05 / 9.15 / 9.40
RedemptionDate / 3yearsfromtheDeemedDateofAllotment / 5yearsfromtheDeemedDateofAllotment / 10yearsfromtheDeemedDateofAllotment / 15yearsfromtheDeemedDateofAllotment
RedemptionAmount(`/NCD) / `1,000
WHOCANAPPLY
Categories / CategoryI / CategoryII / CategoryIII / CategoryIV
QIBPortion / CorporatePortion / HighNetWorthIndividualPortion / RetailIndividualInvestorPortion
AllocationRatio / 30%ofOverallIssueSize / 10%ofOverallIssueSize / 30%ofOverallIssueSize / 30%ofOverallIssueSize
Publicfinancialinstitutions,scheduledcommercialbanks,IndianmultilateralandbilateraldevelopmentfinancialinstitutionwhichareauthorizedtoinvestintheNCDs;
Providentfunds,pensionfundswithaminimumcorpusof`2500.00lakhs,superannuationfundsandgratuityfunds,whichareauthorizedtoinvestintheNCDs;
VentureCapitalFunds/AlternativeInvestmentFundregisteredwithSEBI;
InsuranceCompaniesregisteredwithIRDAI;
Stateindustrialdevelopmentcorporations;
Insurancefundssetupandmanagedbythearmy,navy,orairforceoftheUnionofIndia;
InsurancefundssetupandmanagedbytheDepartmentofPosts,theUnionofIndia;
NationalInvestmentFundsetupbyresolutionno.F.No.2/3/2005‐DDIIdatedNovember23,2005oftheGovernmentofIndiapublishedintheGazetteofIndia;and
MutualFunds. / Companieswithinthemeaningofsection2(20)oftheCompaniesAct,2013;co‐operativebanks,andsocietiesregisteredundertheapplicablelawsinIndiaandauthorizedtoinvestintheNCDs;
Statutory Bodies/Corporations,
RegionalRuralBanks
Public/privatecharitable/religioustrustswhichareauthorizedtoinvestintheNCDs;
Scientificand/orindustrialresearchorganizations,whichareauthorizedtoinvestintheNCDs;
Partnershipfirmsinthenameofthepartners;
LimitedliabilitypartnershipsformedandregisteredundertheprovisionsoftheLimitedLiabilityPartnershipAct,2008(No.6of2009);
AssociationofPersons;and
Anyotherincorporatedand/orunincorporatedbodyofpersons / ResidentIndianindividualsandHinduUndividedFamiliesthroughtheKartaapplyingforanamountaggregatingtoabove`10lakhsacrossallseriesofNCDsinthisTranche1Issue / ResidentIndianindividualsandHinduUndividedFamiliesthroughtheKartaapplyingforanamountaggregatinguptoandincluding`10lakhsacrossallseriesofNCDsinthisTranche1Issue