30-Nov-2023
2 mins read
IIFL Samasta Finance Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on December 4, 2023, and closes on December 15, 2023. It will have a base issue size of Rs 1000 crore.
About IIFL Samasta Finance Limited
Established in 1995, IIFL Samasta stands as a pivotal Non-Banking Finance Company Micro Finance Institution (NBFC MFI) in India. The company operates as a subsidiary of IIFL Finance Limited and serves as a beacon of financial inclusivity. Its innovative suite of loan offerings not only addresses the financial needs of underserved individuals but also contributes significantly to uplifting communities and fostering economic growth within India.
Targeted Financial Offerings: IIFL Samasta specializes in a diverse range of loans catering to underserved demographics. These loans are strategically crafted to address specific needs and foster financial empowerment among its members. Notably, the offerings include:
- Income Generating Loans (IGL): Designed to support entrepreneurial ventures, these loans aid in initiating new businesses or expanding existing ones, fostering economic growth within communities.
- Top-Up Loans: Providing additional financial support, these loans complement existing ventures or assist in meeting unforeseen financial requirements.
- Loans Against Property: Leveraging assets to secure financial assistance, these loans offer a viable option for individuals seeking substantial financial aid.
- Micro-Enterprise Loans: Tailored for small-scale enterprises, these loans fuel the growth of micro-businesses, contributing to local economic development.
- Lifestyle and Family Welfare Loans: These innovative offerings target enhancing the quality of life for borrowers. The loans encompass diverse categories, including: – Dairy Cattle Loans – Sanitation and Hygiene Loans – Loans for Daily-Use Items (e.g., cook stoves, water purifiers, mobile phones, solar lights)
Empowering Underserved Communities: Through its specialized financial products, IIFL Samasta plays a pivotal role in fostering financial inclusion and empowerment. By catering to the unique needs of marginalized individuals and women within Joint Liability Groups (JLG), the institution actively contributes to socioeconomic upliftment and community development.
Financial Performance of IIFL Samasta Finance Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 8,904.10 | 6,394.43 | 4,408.21 |
| Revenue | 1,753.51 | 1,019.93 | 702.2 |
| Profit After Tax | 128.18 | 50.6 | 66.62 |
| Total Borrowing | 3,540.00 | 3,144.00 | 2,215.81 |
IIFL Samasta Finance Limited NCD Tranche I Nov 2023 Details
| Issue Open | December 4, 2023 – December 15, 2023 |
| Security Name | IIFL Samasta Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 1,000.00 Crores |
| Issue Size (Shelf) | Rs 2,000.00 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-/ Positive” by CRISIL Ratings Limited |
| Tenor | 24, 36 and 60 Months |
| Series | Series I to VI |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Beacon Trusteeship Limited |
NCD Allocation Ratio of IIFL Samasta Finance Limited NCD
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| Retail | 40% |
| HNI | 40% |
NCD’s Offered by Category
| Category | NCD’s Reserved |
| Institutional | 200,000 |
| Non-Institutional | 200,000 |
| HNI | 800,000 |
| Retail | 800,000 |
| Total NCD’s | 2,000,000 |
IIFL Samasta Finance Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
| Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 60 Months |
| Coupon (% per Annum) | 9.21% | 9.60% | 9.57% | 10.00% | 10.03% | 10.50% |
| Effective Yield (% per Annum) | 9.59% | 9.59% | 9.99% | 9.99% | 10.49% | 10.49% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
NCD Rating of IIFL Samasta Finance Limited NCD
The NCDs proposed to be issued under this issue have been rated “CRISIL AA-/ Positive” by CRISIL Ratings Limited.
The Objective of the IIFL Samasta Finance Limited NCD
The company intends to utilize the raised funds from the Issue, deducting the Issue-related expenses, for the following purposes:
- Facilitating onward lending, financing, and repayment or prepayment of principal and interest on current borrowings.
- Allocations towards general corporate endeavours.
IIFL Samasta Finance Limited NCD Promoter(s)
Cholamandalam Financial Holdings Limited, Ambadi Investments Limited, M V Subbiah, M A Alagappan, A Vellayan, A Venkatachalam, M M Murugappan, M M Venkatachalam, M A M Arunachalam, S Vellayan, Arun Alagappan, M M Veerappan, V Narayanan, V Arunachalam, M M Muthiah, M V Muthiah, Arun Venkatachalam, M V Subramanian, M V Murugappan HUF, M V Subbiah HUF, M A Alagappan HUF, A Vellayan HUF, A Venkatachalam HUF, M M Murugappan HUF, M A M Arunachalam HUF, M M Venkatachalam HUF, M M Muthiah HUF, A M M Arunachalam HUF, Murugappa & Sons (M V Subbiah, M A Alagappan & M M Murugappan hold shares on behalf of the firm) Tube Investments of India Limited New Ambadi Estates Private Limited, Coromandel International Limited, Ambadi Enterprises Limited, Carborundum Universal Limited, E.I.D. Parry (India) Limited, M A Alagappan (holds shares on behalf of Kadamane Estates) are the promoters of the company.
IIFL Samasta Finance Limited NCD Lead Manager(s)
The lead manager of the NCD are:
- Jm Financial Limited
- IIFL Securities Ltd
- Nuvama Wealth Management Limited
- Trust Investment Advisors Private Limited
How to Apply for IIFL Samasta Finance Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the IIFL Samasta Finance Limited NCD with Bigul: https://bonanzaonline.com/
How to Check the Allotment Status of IIFL Samasta Finance Limited NCD
The registrar for IIFL Samasta Finance Limited NCD is Link Intime India Private Limited. To check your allotment status, please click on this link: https://linkintime.co.in/
FAQs
- What is IIFL Samasta Finance Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by IIFL Samasta Finance Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The funds raised from the issue, after deducting related expenses, will be used for lending, repaying existing borrowings, and general corporate purposes.
- What is the issue size and price of the NCD?
The base issue size is Rs 1000 crore, with a green shoe option potentially taking the total to Rs 2000 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on December 4, 2023, and closes on December 15, 2023.
- How has the NCD been rated?
The NCD has received a “CRISIL AA-/ Positive” by CRISIL Ratings Limited.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in a dematerialised format.
- Who are the lead managers for this NCD issue?
The NCD is being led by:
- Jm Financial Limited
- IIFL Securities Ltd
- Nuvama Wealth Management Limited
- Trust Investment Advisors Private Limited
- How can I apply for the IIFL Samasta Finance Limited NCD?
Once the NCD opens for subscription, you can apply through this link: IIFL Samasta Finance Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is Link Intime India Private Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 6 series of NCDs available with varying tenures of 24, 36 and 60 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Beacon Trusteeship Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between monthly and annual interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, IIFL Samasta Finance will allocate the debentures to applicants on a proportional basis.