India Infoline Finance Ltd (IIFL), a non-deposit-taking NBFC subsidiary of India Infoline, would raise up to Rs 500 crore via unsecured redeemable non-convertible debentures (NCDs).
There will be a base issue of Rs 250 crore, with an option to retain oversubscription up to another Rs 250 crore. The NCDs will be listed on the BSE and the NSE, with a face value of Rs 1,000. They will be in the nature of subordinated debt and will be eligible for Tier II capital.
The NBFC has a capital adequacy ratio (CAR) of 18 per cent and the new funding would increase its CAR by over 30 per cent. The NCD issue has three investment options and the yield on redemption is 13.52 per cent, 12.75 per cent and 12.75 per cent (per annum) for Option I, II and III, respectively. The issue will open on Sept 5 and close on Sept 18.
According to IIFL CFO Dhruv Jain, the new funding would take care of the lending requirements for the next two years. “We are also considering the option of secured debentures later in the year,” he added. For its secured issue, the company can raise up to four times the money raised in the unsecured issue.
The lead managers to the issue include Axis Bank, SBI Capital Markets, Edelweiss Financial Services, Trust Investment Advisors and India Infoline Ltd (only for marketing of the issue).
The company’s products include mortgage loans, capital market financing, gold loans and healthcare financing.
(Edited by Sanghamitra Mandal)