IIFL Finance NCD will open for subscription from 06 January 2023. the company aims for a base issue size of ₹1000 Crores.
IIFL Finance Limited
Incorporated in 1995, IIFL Finance Limited is a Mumbai-based Non-deposit taking NBFC company. The entity is categorized as a Systemically Important Non-deposit taking Non-Banking Financial Company (“NBFC-ND-SI”) registered with the RBI. They cater to a wide customer base with their extensive range of products in the form of
- Home loans
- Gold loans
- Business loans including loans against property and medium and small enterprise financing
- Microfinance
- Construction, and real estate finance
- Capital market finance
The customers of the company include both retail and corporate clients. The total revenue of IIFL Finance Limited for fiscal 2022, 2021, and 2020 were Rs. 70,062.79 million, Rs. 59,896.89 million, and Rs. 49,261.25 million, respectively.
The company caters to the credit requirements of a diverse customer base with its plethora of products. Its offerings include home loans, gold loans, business loans including loans against property and medium and small enterprise financing, microfinance, construction and real estate finance, and capital market finance, catering to both retail and corporate clients.
Its key strategy is to steadily grow high-quality, diversified retail assets focusing on under-banked segments, with effective risk management and cost optimization through well-defined processes and leveraging technology.
IIFL Finance revenue from operations on a consolidated basis grew at a CAGR of 10.68% and on a standalone basis grew at a CAGR of 10.89% over the last three Fiscals Years. The total revenue of IIFL Finance for fiscal 2022, 2021, and 2020 was INR 7,006.28 crore, INR 5,989.69 crore, and INR 4,926.13 crore, respectively.
Objectives of the Issue
- For the purpose of onward lending, financing, and refinancing the existing indebtedness of IIFL Finance Limited – At least 75%.
- General Corporate Purposes – Maximum of up to 25%.
IIFL Finance NCD January 2023 Details
| Issue Open | Jan 6, 2023 – Jan 18, 2023 |
| Security Name | IIFL Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 1,000.00 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 | Annual, Cumulative and Monthly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trusties | VARDHMAN TRUSTEESHIP PRIVATE LIMITED |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Annual | 8.50% | 8.49% | INR 1,000 |
| Series 2 | 24 months | Cumulative | NA | 8.50% | INR 1,177.50 |
| Series 3 | 36 months | Annual | 8.75% | 8.74% | INR 1,000 |
| Series 4 | 36 months | Cumulative | NA | 8.75% | INR 1,286.45 |
| Series 6 | 60 months | Monthly | 8.65% | 9% | INR 1,000 |
| Series 7 | 60 months | Annual | 9% | 8.99% | INR 1,227 |
| Series 8 | 60 months | Cumulative | NA | 9% | INR 1,539 |
NCD Rating
The NCDs proposed to be issued under this Issue have been rated CRISIL AA/Stable by CRISIL Ratings Limited and ICRA AA (stable) by ICRA Limited. Such ratings indicated that the instruments are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31-Mar-20 | 34373.41 | 4926.12 | 503.47 | 4667.66 | 27098.68 |
| 31-Mar-21 | 40666.92 | 5989.69 | 760.81 | 5265.75 | 31595.37 |
| 31-Mar-22 | 45910.18 | 7006.28 | 1188.25 | 6279.76 | 35255.97 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 100,000 |
| Non-Institutional | 100,000 |
| HNI | 400,000 |
| Retail | 400,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Mr. Nirmal Bhanwarlal Jain
- Mr. R. Venkataraman
Lead Manager(s)
- Edelweiss Financial Services Ltd
- IIFL Securities Ltd
- Equirus Capital Private Limited
- Trust Investment Advisors Private Limited
IIFL NCD Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: iifl.ncd2022@linkintime.co.in
Website: www.linkintime.co.in
IIFL Finance Contact Details
IIFL FINANCE LIMITED
802, 8th Floor, Hub Town Solaris,
N.S. Phadke Marg, Vijay Nagar,
Andheri East, Mumbai 400069, Maharashtra
Phone: +91 22 6788 1000
Email: csteam@iifl.com
Website: www.iifl.com
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in IIFL Finance NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
