IIFL Finance Limited NCD
IIFL Finance Limited is one of India’s leading players in the financial services space. Together with its subsidiaries – IIFL Samasta Finance Limited (Formerly known as Samasta Microfinance limited), IIFL Home Finance Limited, and IIFL Open Fintech Private Limited, it provides a diverse range of loans and mortgages. These include gold loans, home loans, and business loans including loans against property and medium & small enterprise financing, microfinance, capital market finance, and developer & construction finance, catering to both retail and corporate clients. The company has a nationwide presence with a thriving network of 3,119 branches across 500+ cities.
IIFL Finance Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with a face value of ₹ 1000 each, a Base Issue size of ₹ 100 Crores, and an option to retain oversubscription up to ₹ 900 Crores aggregating up to ₹ 1000 crores, being the Tranche-I Issue size. The issue opens for subscription on Friday, 6th January 2023, and will close on or before Wednesday, 18th January 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.
IIFL Finance Limited NCD Details:
| Tranche I Issue opens: | Friday, 6th January 2023 | ||||
| Tranche I Issue closes: | Wednesday, 18th January 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | Rs.1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Debentures | ||||
| Minimum Application: | 10 NCDs (Rs.10, 000) & in multiple of 1NCD | ||||
| Listing: | BSE & NSE | ||||
| Credit Rating | CRISIL AA/Stable” (pronounced as CRISIL double A rating with Stable outlook) for an amount of ₹5000 crores by CRISIL Limited (“CRISIL”) and “[ICRA] AA (stable)” (pronounced as ICRA Double A (stable)) for an amount of ₹ 5000 crores by ICRA Limited (“ICRA”) | ||||
| Tranche-I Issue Size | ₹ 100 Crores (“Base Issue Size”), with a green shoe option up to ₹ 900 Crores amounting to ₹ 1000 Crores (“Tranche I Issue Limit”) | ||||
| Minimum Subscription: | Minimum subscription is 75% of the Base Issue, i.e., ₹ 75 crores | ||||
| Registrar: | Link Intime India Private Limited | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | II – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
II – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the overall Issue Size | 10% | 10% | 40% | 40% | |
| Bucket Size (₹) assuming Issue size of ₹ 400 Cr₹ | ₹ 100 Cr | ₹ 100 Cr | ₹ 400 Cr | ₹ 400 Cr | |
IIFL Finance Limited NCD
Application form
IIFL Finance Limited NCD Specific Terms of the Prospectus:
The terms of the NCDs offered under the Issue are as follows:
| Series | I | II | III* | IV | V | VI | VII |
| Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative | Monthly | Annual | Cumulative |
| Tenor | 24
months |
24
months |
36
months |
36 months | 60 months | 60 months | 60 months |
| Coupon Rate (% p.a.) for NCD Holders in: | |||||||
| Category I, II, III & IV | 8.50% | NA | 8.75% | NA | 8.65% | 9.00% | NA |
| Effective Yield (% p.a.) for : | |||||||
| Category I, II, III & IV | 8.49% | 8.50% | 8.74% | 8.75% | 9.00% | 8.99% | 9.00% |
| Amount (₹ / NCD) on Maturity for ^ : | |||||||
| Category I, II, III & IV | ₹1,000 | ₹ 1,177.50 | ₹1,000 | ₹ 1,286.45 | ₹1,000 | ₹1,000 | ₹ 1,539.00 |
| Interest Frequency | Annual | Cumulative | Annual | Cumulative | Monthly | Annual | Cumulative |
*The Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
Conclusion:
With nominal returns potentially going into double digits, this is an attractive proposition due to the current scenarios from a return perspective, which will provide a regular monthly income for up to 5 years. The allotment is on a first come first serve basis. As the NCD is going to be listed on BSE one can always encash the amount invested as one desires, and due to the availability of the NCD in only Demat form, one must have a Demat account opened to apply.