IIFL Finance Ltd, a prominent financial institution, has recently announced its plans to raise ₹1,500 crore through a public issue of secured bonds. The firm, backed by Fairfax, aims to generate funds by issuing secured non-convertible debentures (NCDs).
According to a report by CNBC-TV18, the bonds offer an attractive yield of up to 9 percent, ensuring a high level of safety for investors. IIFL Finance emphasizes that this fundraising initiative is driven by the goal of expanding its business and strengthening its capital base.
The company intends to issue secured redeemable NCDs, with a total value of ₹300 crore. Additionally, they have included a green-shoe option, allowing them to retain oversubscriptions up to ₹1,200 crore (totaling ₹1,500 crore). The NCDs are available in various tenures, including 24 months, 36 months, and 60 months, with an effective annual yield of 9 percent for the 60-month tenure.
Interest payments for these bonds can be made annually, at maturity, or on a monthly basis for the 60-month tenure. The face value of IIFL bonds is set at ₹1,000, and the minimum application size for all categories is ₹10,000. The public issue will commence on 9th June 2023 and conclude on 22nd June 2023, with allotments being made on a first-come-first-served basis.
To manage the issue, IIFL Finance has appointed Edelweiss Financial Services Limited, IIFL Securities Ltd, Equirus Capital Private Ltd, and Trust Investment Advisors Private Ltd as the lead managers. The NCDs will be listed on both the BSE Ltd and NSE, providing liquidity to investors.
Kapish Jain, the Group CFO of IIFL Finance, stated that the funds raised will be utilized to meet the credit requirements of customers and accelerate the firm’s digital transformation efforts, aiming to provide a seamless and hassle-free experience.
About IIFL Finance:
IIFL Finance Limited, also known as IIFL and India Infoline Finance Limited, is a financial services company based in Mumbai, India. It offers a wide range of financial solutions and is led by its founder, Nirmal Jain.
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