Mumbai, October : IIFL Finance, one of India’s largest Non-Banking Financial Companies today said that it has closed its retail bonds issue today after the issue received 9.35 times oversubscription in just 10 working days since issuance on September 27. The base issue of Rs 100 crore secured bonds received bids worth about Rs 935 crores at the end of day today. The public issue was previously supposed to be closed on October 18, 2021.
The Fairfax -backed IIFL Finance issued secured redeemable non-convertible debentures (NCDs), aggregating to Rs 100 crore, with a green-shoe option to retain over-subscription up to Rs 900 crore (aggregating to a total of Rs 1,000 crore) for the purpose of business growth and capital augmentation.
Rajesh Rajak, CFO, IIFL Finance said, “We thank all the investors for their trust in our issue. It is heartening to see overwhelming response across all categories– retail, individual, corporate and institutional.”
“This is a testament of investors’ trust in IIFL Group’s 25 year legacy and successful track record in public issues.”
The IIFL bonds offered highest effective yield of 8.75% per annum for tenor of 60 months. The company will also offer an incentive of 0.25% per annum for existing bond or equity shareholders of the company. The NCD is available in tenors of 24 months, 36 months, and 60 months. The frequency of interest payment is available on monthly, annual and at maturity basis for 60 months tenor, while for other tenors it is available on annually and at maturity basis.
The credit rating has been AA/Stable by Crisil and AA+/negative by Brickwork, which indicates that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
IIFL Finance has over 2500 branches and Loan Assets under Management of Rs 43,160 crore as on June 30, 2021. Most importantly, 93% of the book is retail – which is focused on small ticket loans. IIFL Finance has consistently maintained low level of NPAs over the years of operations and continues to focus on good quality of assets with gross NPA of 2.21% and Net NPA of 1.02%.
In Q1 FY22, IIFL Finance reported a profit after tax of Rs 266 crore, up 735% on year with a robust return on equity of 19.7%. It has strong relationship with multiple banks and financial institutions.
The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Equirus Capital Private Limited. The NCDs will be listed on the BSE Limited and National Stock Exchange of India Limited (NSE), to provide liquidity to investors. The IIFL Bonds are issued at face value of Rs 1,000 and the minimum application size is Rs 10,000 across all categories.
About IIFL Finance: IIFL Finance Ltd is one of the leading retail focused diversified NBFC in India, engaged in the business of loans and mortgages along with its subsidiaries – IIFL Home Finance Limited and Samasta Microfinance Limited. IIFL Finance, through its subsidiaries, offers a wide spectrum of products such as Home loan, Gold loan, Business loan, Microfinance, Capital Market finance and Developer & Construction finance to a vast customer base of over 6 million customers. IIFL Finance has widened its pan-India reach through extensive network of branches spread across the country and various digital channels.
