IIFL Finance, one of the country’s largest Non-Banking Financial Companies, on Friday said that it has closed its retail bonds issue today after the issue received 9.35 times oversubscription in just 10 days since issuance on 27 September.
The base issue of ₹100 crore secured bonds received bids worth about ₹935 crores at the end of day Friday. The public issue was previously supposed to be closed on 18 October this year.
The Fairfax -backed IIFL Finance issued secured redeemable non-convertible debentures (NCDs), aggregating to ₹100 crore, with a green-shoe option to retain over-subscription up to ₹900 crore (aggregating to a total of ₹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 ₹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 ₹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 ₹1,000 and the minimum application size is ₹10,000 across all categories.
Source: Live Mint