IIFL Finance, a Systemically Important Non-deposit taking Non-Banking Financial Company, will open a public issue of Secured NCDs on September 27, 2021, to raise up to Rs. 1,000 crore, for the purpose of onward lending, financing, refinancing the existing indebtedness of our Company (payment of interest and/or repayment/prepayment of principal of borrowings) and General corporate purposes. The Secured NCDs offer up to 8.75% yield.
IIFL Finance will issue Secured Redeemable Non-convertible Debentures (Secured NCDs), aggregating to Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore).
The IIFL Secured NCDs offer highest effective yield of 8.75% per annum for tenor of 60 months. The company will also offer an incentive of 0.25% p.a. for existing bond or equity share holders of the company and existing NCD holders of IIFL Home Finance Limited. The NCD is available in tenors of 24 months, 36 months and 60 months. The frequency of interest payment is available on monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on annually and at maturity basis.
The NCDs proposed to be issued have been rated CRISIL AA/Stable by CRISIL and BWRAA+/negative by Brickwork, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
Rajesh Rajak, CFO, IIFL Finance said, "Through a strong physical presence of over 2500 branches across India and a welldiversified retail portfolio, IIFL Finance caters to the credit need of underserved population. The funds raised will be used to meet credit need of more such customers and accelerate our digital process transformation to enable a frictionless experience."
He added, "IIFL has an impeccable track record of more than 25 years and all the bond issues and the debt obligations have always been paid on time."
IIFL Finance's consolidated Assets under Management was Rs 43,160 crore as on June 30, 2021. Most importantly, 93% of the book is retail - which is focused on small ticket loans.
The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited* and Equirus Capital Private Limited. The NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited (NSE). BSE shall be the designated stock exchange. The IIFL Bonds would be issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories. The public issue opens on September 27, 2021 and will close on October 18, 2021, and has an option of early closure or extension as may be approved by the Board of Directors of Company or the Finance Committee. The allotment will be made on first come first served basis.
Shares of IIFL FINANCE LIMITED was last trading in BSE at Rs. 275.3 as compared to the previous close of Rs. 277.25. The total number of shares traded during the day was 51197 in over 860 trades.
The stock hit an intraday high of Rs. 287 and intraday low of 270. The net turnover during the day was Rs. 14407712.
* IIFL Securities Limited is deemed to be our associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, IIFL Securities Limited would be involved only in marketing of the Issue.