26-Oct-2023
2 mins read
NCD Detail
India Infoline Finance Limited, also called IIFL Finance, is preparing to launch its non-convertible debenture (NCD) public issue worth Rs 300 crore. This issuance includes a green shoe option of Rs 1,200 crore, effectively expanding the overall value to Rs 1,500 crore.
Investors will have the opportunity to choose from seven different debentures that span terms ranging from 24 to 60 months. The annual interest rate varies from 8.35% to 9%, with both annual and cumulative interest payout options available. Notably, the option for monthly interest payouts is only available for the 5-year debenture.
Each NCD holds a face value of Rs 1,000, with the minimum investment set at Rs 10,000. It should be noted that a demat account is mandatory to participate in this issue.
About Company
Founded in 1995, IIFL Finance Limited is a reputable Non-Banking Financial Company based in Mumbai. The firm, which does not accept deposits (NBFC-ND-SI), is duly registered with the Reserve Bank of India (RBI).
IIFL Finance Limited provides a vast array of products to cater to the diverse needs of its clients. The company’s services include home loans, gold loans, and business loans, which cover loans against property and financing for small and medium-sized enterprises. In addition, they offer microfinance services and finance for construction and real estate projects as well as capital market finance.
Their comprehensive service offering attracts a wide spectrum of clients, including individual retail consumers and corporate clients.
On the financial front, IIFL Finance Limited has shown steady growth in its consolidated assets under management over the past few years. As of March 31, 2023, the company managed assets worth Rs 64,637.64 crores. This figure increased significantly from Rs 51,209.79 crore in 2022 to Rs 44,688.03 crore in 2021.
Issue Details
Established in 1995, IIFL Finance Limited is a distinguished Non-Banking Financial Company in Mumbai. This deposit-agnostic company (NBFC-ND-SI) is officially recognized and registered with the Reserve Bank of India (RBI).
IIFL Finance Limited offers a broad suite of services to meet its diverse clientele’s various needs. Their extensive product portfolio includes home loans, gold loans, and business loans, which comprise loans against property and funding solutions for small and medium-sized businesses. In addition, they provide microfinance options and financing for construction, real estate projects, and capital markets.
The company’s wide-ranging financial solutions cater to various clients, from individual retail customers to larger corporate entities.
Financially, IIFL Finance Limited has demonstrated consistent growth in its consolidated assets under management over recent years. As of the end of the fiscal year on March 31, 2023, the company’s managed assets amounted to Rs 64,637.64 crores. This represents a substantial increase from Rs 51,209.79 crore in 2022 and Rs 44,688.03 crore in 2021.
Financial Performance (In Crore)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Reserves and Surplus |
| 31-Mar-21 | 40,662.05 | 5,968.04 | 760.81 | 53.38 |
| 31-Mar-22 | 45,910.44 | 7,023.61 | 1,188.25 | 64.07 |
| 31-Mar-23 | 53,001.33 | 8,447.11 | 1,607.55 | 89.08 |
Important Dates
| Issue Open | June 9, 2023 – June 22, 2023 |
| Security Name | IIFL Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 300.00 Crores |
| Issue Size (Shelf) | Rs 5,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating |
CRISIL AA/Stable by CRISIL Limited and ICRA AA (stable) by ICRA Limited.
|
| Tenor | 24, 36 and 60 Months |
| Series | Series I to VII |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trusties | Vardhman Trusteeship Private Limited |
Coupon Rates
| Series1 | Series2 | Series3 | Series4 | Series5 | Series6 | Series7 | |
| Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative | Monthly | Annual | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 8.35% | NA | 8.50% | NA | 8.65% | 9.00% | NA |
| Effective Yield (% per Annum) | 8.34% | 8.35% | 8.49% | 8.50% | 8.99% | 8.99% | 9.00% |
| Amount on Maturity (In Rs) | 1,000 | 1,174.25 | 1,000 | 1,277.60 | 1,000 | 1,000 | 1,539.35 |
NCD Rating
The Non-Convertible Debentures (NCDs) set to be released under this issue have received a rating of CRISIL AA/Stable from CRISIL Ratings Limited and ICRA AA (stable) from ICRA Limited. These ratings suggest a high level of safety regarding the timely fulfilment of financial responsibilities and indicate a very minimal risk associated with credit.
Company Promoters
The promoters of IIFL Finance Limited NCD are Nirmal Bhanwarlal Jain and R. Venkatraman are the company promoters.
The Objective of the Issue
The company has outlined its plans for using net proceeds from this issue. Firstly, the funds will be directed towards ongoing lending, financing activities, and refinancing the company’s existing debt. This would encompass interest payment and the repayment or prepayment of principal borrowings. Secondly, the funds will also be utilized for assorted General Corporate Purposes.
How to Apply
Wait for the NCD to open for subscription, then click on this link to apply for the IIFL Finance Limited NCD with Bigul https://ncd.bonanzaonline.com/.
How to Check Allotment Status
The registrar for IIFL Finance Limited NCD is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
1. When is the IIFL Finance NCD Tranche II June 2023 public issue scheduled?
The public issue of IIFL Finance NCD Tranche II June 2023 opens for subscription on June 9, 2023, and closes on June 22, 2023. Please note that if the public issue is fully subscribed (base + shelf) before its closing day, it may be closed early. The allotment follows a First-Come, First-Serve principle.
2. What is the timetable for IIFL Finance NCD Tranche II June 2023?
The important dates for IIFL Finance Limited NCD IPO are as follows: The issue opens on June 9, 2023, and closes on June 22, 2023.
3. Can you provide the pricing information for IIFL Finance NCD Tranche II June 2023?
The pricing for IIFL Finance NCD Tranche II June 2023 is Rs 1000 per NCD.
4. What is the face value of IIFL Finance NCD Tranche II June 2023?
Each NCD issued will have a face value of Rs 1000.
5. What are the operation hours for IIFL Finance NCD Tranche II June 2023 subscription?
The IIFL Finance NCD Tranche II June 2023 will be open for subscription on working days from 10:00 a.m. to 5:00 p.m. until June 22, 2023. The bid may close earlier if fully subscribed.
6. What are the tenors of IIFL Finance NCD Tranche II June 2023 bonds?
The NCDs have fixed maturity dates of 24, 36, and 60 months.
7. What is the base issue size of IIFL Finance NCD Tranche II June 2023?
The IIFL Finance NCD Tranche II June 2023 includes a base issue and a shelf issue. The base issue size is Rs 300.00 Crores, while the shelf issue size is Rs 5,000.00 Crores. The shelf issue is an oversubscription retention option above the base issue.
8. Can NRIs apply for the IIFL Finance Limited NCD IPO?
No, NRIs are not eligible to apply for this issue.
9. Who is ineligible to invest in the IIFL Finance Limited issue?
The following entities are ineligible to invest in this issue: Minors without a guardian name, foreign nationals, persons residing outside India, foreign portfolio investors, foreign venture capital investors, qualified foreign investors, overseas corporate bodies, and individuals who are ineligible to contract under applicable statutory/regulatory requirements.
10. Which stock exchanges will the IIFL Finance Limited NCDs be listed on?
The NCDs are proposed to be listed on the BSE and NSE.