About Company:
India Infoline Finance Ltd. (IIFL) is a Systemically Important Non-deposit accepting Non-Banking Financial Company ('NBFC-NDSI') registered with the RBI, catering to the credit requirements of a diverse customer base with its plethora of products. Its offerings include mortgage loans, gold loans, commercial vehicle finance, MSME finance, construction and real estate finance, capital market finance, and micro finance; catering to both retail and corporate clients. It is a subsidiary of IIFL Holdings Limited, which is one of India's leading financial services player, primarily engaged in the business of loans and mortgages, wealth and asset management, retail and institutional broking and investment banking.
Debt Offer Details:
For the purpose of onward lending and repayment of interest and principal of existing loans (75%) as well as general corpus fund need (25%),
IIFL is coming out with Tranche-I of Secured and/or Unsecured Redeemable Non-Convertible Debentures of Rs 1000 each for a base size of Rs 100 crore with a green shoe option to retain oversubscription to the tune of Rs. 900 crore making the total issue size of Rs 1000 crore. The company has an overall shelf limit of Rs 5000 cr.
Issue opens for subscription on 06.08.19 and will close on or before 30.08.19. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE and NSE.
This issue is rated as BWR AA/Stable by Brickworks, CRISIL AA/Stable by CRISIL and ICRA AA/Stable by ICRA. This rating indicates that instruments with such ratings are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Issue is jointly lead managed by Edelweiss Financial Services Ltd., IIFL Securities Ltd., ICICI Securities Ltd. and Trust Investment Advisors Pvt. Ltd. while Link Intime India Pvt. Ltd. is the registrar to the issue. Catalyst Trusteeship Ltd. is the debenture trustee.
These NCDs have tenures of 15 months, 39 months and 69 months. It offers coupon rates ranging from 9.50% to 10.00% based on selection of investors. Frequency of interest payments will be Monthly, Quarterly, Annually or cumulative as per the choice of investors. This issue has no Put and Call options Allotment will be made on 'first come-first served' basis. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.
| Series | S1- Payable at redemption- Rs 1126.75/- Tenor 15 months, for category I,II, III and IV Investors (Secured) |
|---|---|
| S2- 9.50% Tenor 39 months, for category I,II, III and IV Investors- Quarterly Option (Secured) | |
| S3- Payable at redemption- Rs 1357.33/- Tenor 39 months, for category I,II, III and IV Investors (Secured) | |
| S4- 9.85% Tenor 39 months, for category I,II, III and IV Investors- Annual Option (Secured) | |
| S5- 10.00% Tenor 69 months, for category I,II, III and IV Investors- Monthly Option (Unsecured) | |
| S6- Payable at redemption- Rs 1776.16/- Tenor 69 months, for category I,II, III and IV Investors (Unsecured) |
Financial Data:
On financial performance front, IIFL has (on a consolidated basis) posted revenue/net profits of Rs 3921.04 cr. / Rs 464.73 cr. (FY18) and Rs 5016.20 cr. / Rs 728.70 cr. (FY19).As on 31.03.19paid up equity capital of. Rs 280.92 cr. is supported by free reserves of Rs 4032 cr. Its current debt equity ratio of 6.16 will get enhanced to 6.39 post this issue. As on the said date, its capital adequacy ratio stands at 19.18%. Net NPAs are reduced to 0.62% as on 31.03.19 against 0.64% as on 31.03.18.
Review By Dilip Davda on August 3, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
