IIFL Finance to raise up to ₹1,000 crore through Public Issue of Unsecured Subordinated Redeemable NCD

IIFL Finance Limited (Formally known as IIFL Holding Limited)  will launch its  public issue of unsecured subordinated redeemable non-convertible debenture to raise up to Rs.1000 cr with a base issue size of Rs 100 cr and a green-shoe option to retain over subscription of up to Rs 900 cr, for the purpose of business growth and capital augmentation.

The bonds offer up to 10.03% yield for a tenor of 87 months and is thus provide an advantage against interest rate fluctuations in future. The issue has been rated AA by Crisil and AA+ by Brickwork.

Features of IIFL Finance NCD March, 2021 – Tranche I

Issue start date: 3-March-2021

Issue end date: 23-March-2021 (with an option of early closure)

It offers NCD bonds for 87 months tenure (7 years 3 months).

Coupon interest rates are between 9.6% to 10%. The yield is up to 10.03%.

These are unsecured Non Convertible Debentures.  

Face Value Rs.1000.

Minimum investment Rs.10000

These NCD bonds would be listed on NSE & BSE to provide liquidity to investors.

NRI’s cannot apply to this NCD subscription.

The allotment will be made on first come first served basis

The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Equirus Capital Private Limited.

NCD’s are available in the 3 series.  

·         Series-I would provide interest every year,

·         Series-II would provide monthly

·         Series-III would provide interest only on maturity.

Interest payable frequency are monthly, yearly and on maturity depending on the option chosen by the NCD investor.  

IIFL has a strong physical presence of 2500 branches across India and a well-diversified retail portfolio, IIFL Finance caters to the credit need of underserved population.IIFL Finance's loan assets under management stand at Rs 42,264 cr. The company's 90 per cent of the book is retail which is focused on small ticket loans.

IIFL Finance had a gross non-performing asset (NPA) ratio of 1.61% and a net NPA ratio of 0.77% and its total capital adequacy ratio stood at 21.4% at the end of December 2020. In Q3 FY21, IIFL Finance reported a profit after tax of ₹268 crore. up by 26 per cent from the year-ago period. The return on equity was 18.4 per cent.        

IIFL Finance stock was trading at Rs 277 on NSE, 26 Feb 2021 at 3:30pm, down 0.32 per cent from previous close.   

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