IIFL Finance has a strong physical presence of over 4,000 branches across India.

MUMBAI, 9th JUNE, 2023 (GPN): Leading NBFC lender IIFL Finance is raising up to Rs 1,500 crore through a public issue of secured redeemable non-convertible debentures (NCDs) to fuel credit growth and debt management, The face valve of IIFL bonds will be ₹1,000 and the minimum application size is ₹10,000 across all categories. The public issue opens on 9 June 2023 and closes on 22 June 2023. Also, the allotment will be made on a first-come-first-served basis. funds raised will be used to meet the credit needs of customers and accelerate the firm’s digital process transformation to enable a frictionless experience, Sharing other details Mr Kapish Jain Group CFO, IIFL Finance, said on Friday.

The public issue of the IIFL NCDs has a base offer of Rs 300 crore. However, the company has a green shoe option to retain an over-subscription of up to Rs 1,200 crore.

With the Reserve Bank of India pausing its rate hike cycle, IIFL remains optimistic about raising the entire Rs 1,500 crore in this tranche of issues with an attractive 9 per cent coupon rate.

“We expect to raise the full subscription amount in this issue due to the attractive coupon rates. Credit growth is robust after the Covid-19 pandemic,” IIFL Director Gaurav Mishra said.

The IIFL bonds offer a coupon rate starting at 8.35 per cent for 24 months and the highest effective yield of 9 per cent per annum for a tenor of 60 months.

IIFL has kept the highest coupon rate at 9 per cent, the same as its last NCD issue in January, in which it announced raising up to Rs 1,000 crore.

The NCDs are available in tenors of 24 months, 36 months and 60 months. The face value of the NCDs is Rs 1,000 each and the minimum application size is Rs 10,000. The NCDs will be listed on the BSE and NSE.

The credit rating has been AA by CRISIL Ratings and ICRA. In Q4 FY23, Moody’s upgraded IIFL Finance’s rating from B2 to B1 (stable).

IIFL Finance, through a strong physical presence of over 4,000 branches across India and a well-diversified retail portfolio, caters to the credit needs of underserved populations.

“Our current asset under management is nearly Rs 65,000 crore and the gold loan remains our largest loan book with Rs 27,000 crore, followed by home loan of Rs 21,800 crore as on March 2023,” Mishra said.

He said credit growth to micro and SMEs stood at 59 per cent in FY23 with an outstanding loan of Rs 9,780 crore.

Sreekant Rameela, VP, IIFL, said: “We are very optimistic on the issue right now. If we see the RBI has been stabilizing interest rates and the inflation has touched all time low in the country. We don’t see any further rise in interest rates and this is the best time to put money in NCDs, where customers can gain better than from any other secured investments. Majority of the proceeds under the issue will be used in expansion of housing finance, gold loans and a few to micro finance in digital loans catering to the needs of retail customers. IIFL NCD issue is the best investment for the investors who are looking for safe returns in the next 5 years.”

“This is our working capital for normal loan growth so this year if you look at our loan assets under management, we had a Rs 64,000 crore last year in which we expect to grow by about maybe close to 25% or 22 to 25% this year and that needs to be funded,A significant part of it will be coal ending or basically the assets that we sell down to bank. But still there are loans that come for repayment and have to be replaced. And as some amount of debt in proportion to equity we also plan to increase. So if you are able to raise Rs 1500 crore that is what our target is. We will use this for growth in a gold loan, business loan as well as other products that we have.”said Mr Nirmal Jain, Founder, IIFL Group, Sharing other details.

The NBFC opened 700 branches to expand its reach in gold loans, which grew 28 per cent in FY’23 over the previous year.

IIFL Finance has a 95 per cent retail book focused on small-ticket loans.

IIFL Finance’s gross NPA was 1.8 per cent and its net NPA of 1.1 per cent. As on March 31, about 73.53 per cent of the company’s consolidated loan book is secured with adequate collaterals, which helps mitigate risks further, the company said.

In FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore, a 35 per cent year-on-year growth.

Edelweiss Financial Services Limited, IIFL Securities Ltd, Equirus Capital Private Ltd, and Trust Investment Advisors Private Ltd will be the lead managers to the issue, while the NCDs will be listed on the BSE Ltd and NSE to provide liquidity to investors.

IIFL Finance is categorized as a Systemically Important Non-deposit taking Non-Banking Financial Company (“NBFC-ND-SI”) registered with the RBI.

They cater to a wide customer base with their extensive range of products in the form of

1. Home loans
2. Gold loans
3. Business loans including loans against property and medium and small enterprise financing
4. Microfinance
5. Construction, and real estate finance
6. Capital market finance

The customers of the company include both retail and corporate clients.

The total revenue of IIFL Finance Limited for fiscal 2022, 2021, and 2020 were Rs. 70,062.79 million, Rs. 59,896.89 million, and Rs. 49,261.25 million, respectively.Ends