IIFL-Finan​ce will raise up to Rs.5 bn by NCDs Public issue-By Sachin Murdeshwar

IIFL-Finan​ce will raise up to Rs.5 bn by NCDs Public issue

Mumbai,29th August 2012.(Sachin Murdeshwar):India Infoline Finance Limited (IIFL) , an NBFC subsidiary of India Infoline Limited, will open a Public Issue of Un-Secured Redeemable Non-Convertible Debentures of face value of Rs 1,000 each (“NCDs”) aggregating up to Rs 2,500 million (“Base Issue Size”), with an option to retain oversubscription up to Rs 2,500 million, aggregating to a total of Rs 5,000 million (the “Over all Issue Size”), on September 5,2012. The NCDs will be in the nature of subordinated debt and will be eligible for Tier-II capital. The NCD Issue has 3 investment options and the yield on redemption is 13.52%, 12.75% and 12.75% (per annum) for Option I, II, III respectively. The issue closes on September 18,2012.Mr Nirmal Jain, Founder – Chairman India Infoline Group, told mediapersons here today that “In the last 6 years we have build a robust lending business. We have been successful in maintaining low net NPA of 0.4% through our robust credit appraisal processes and internal controls. I think these bonds present a win-win proposition for investor and company both, as on one hand they offer attractive interest yield, on the other hand, they will help the company to boost its capital adequacy.”

 

Other three non-bank financial companies (NBFCs) have filed draft prospectus to raise money by issuing non convertible debentures (NCDs).The other NBFCs include Religare Finvest, Muthoot Finance,Shriram City Union Finance. Religare Finvest, a subsidiary of Religare Enterprises, will issue secured NCD of face value Rs. 1,000 each,aggregating up to Rs. 2.5 billion with an option to retain over subscription up to Rs. 2.5 billion for issuance of additional NCDs aggregating to a total up to Rs. 5 billion. The tenure of these NCDs ranges from 36 months to 60 months.The proceeds of the issue would be used to support Religare Finvest various financing activities,including lending and investments. Funds would also be used to repay the company’s existing debt and to meet its capital expenditure and working capital requirements.Muthoot Finance, a gold loan company, is also tapping financial markets to raise up to Rs. 5 billion by issues NCD of face value Rs. 1,000 each. The issue is expected to be launched in September.Shriram City Union Finance too is planning to issue secured NCD of face value Rs. 1,000 each, aggregating up to Rs. 2.5 billion with an option to retain over subscription up to Rs. 2.5 billion for issuance of additional NCDs aggregating to a total up to Rs. 5 billion. The NCD will have a face value of Rs. 1,000 and tenure of 36 months to 60 months. The objective of the issue is to diversify the resource profile of the company as well as to seek wider participation from retail investors.

From L to R Mr. Dhruv Jain, Mr. Ashish Sable, Mr. Venkat Ramaswamy, Mr. Nirmal Jain, Founder-Chairman India Infoline Group Limited & Nilesh Shah .