IIFL Finance Limited, a non-banking financial company that is considered systemically important, will issue secured redeemable non-convertible debentures (NCDs) to the public on January 6, 2023 in an effort to raise up to ₹ 10,000 million. The proceeds from the sale of these NCDs will be used for lending, financing, refinancing existing debts, and general corporate purposes. The NCDs offer a yield of up to 9.00%. A total of ₹ 1,000 million in NCDs will be issued, with the option to issue an additional ₹ 9,000 million for a total of ₹ 10,000 million.
The IIFL NCDs offer an effective yield of up to 9.00% per year for a tenor of 60 months. These NCDs are available in three different tenors: 24 months, 36 months, and 60 months. The interest payments on these NCDs can be made on a monthly, annual, or cumulative basis, depending on the chosen tenor. For the 60-month tenor, all three options are available. For the 24-month and 36-month tenors, only annual and cumulative payments are offered.
The credit rating agency CRISIL has assigned a “CRISIL AA/Stable” rating to the IIFL NCDs, indicating that the instruments have a high degree of safety for timely servicing of financial obligations and carry very low credit risk. ICRA has also assigned an “[ICRA] AA(stable)” rating to the NCDs, indicating the same level of creditworthiness.
IIFL Finance has a track record of maintaining low levels of non-performing assets (NPAs) and continues to prioritize high-quality assets. As of September 30, 2022, the company’s gross NPAs were 2.42% and net NPAs were 1.22%. Additionally, 84.30% of the company’s consolidated loan book is secured with adequate collateral, which helps to reduce risk.
The lead managers for the IIFL NCD public issue are Edelweiss Financial Services Limited, IIFL Securities Limited*, Equirus Capital Private Limited, and Trust Investment Advisors Private Limited. These NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited. The face value of the NCDs is ₹ 1,000, and the minimum application size is INR 10,000 (10 NCDs), with increments in multiples of ₹ 1,000 (1 NCD) thereafter. The public issue will open on January 6, 2023 and close on January 18, 2023, with the option for early closure.
During the last trading session, the shares of IIFL Finance Limited were trading on the BSE at ₹ 466.40, up from the previous close of ₹ 462.30. A total of 28,864 shares were traded during the day, with more than 1,323 trades taking place.
During the trading session, the stock reached an intraday high of ₹ 473.50 and an intraday low of ₹ 460.30. The total value of shares traded on the day was ₹ 13,456,151.00.
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