Piyush Prajapati
5 Jun, 2023
IIFL Finance Limited NCD: Secured Redeemable Non-Convertible Debentures (NCDs)
Introduction : IIFL Finance Limited is a Non-deposit taking NBFC (Non-Banking Financial Company) that has recently announced its Secured Redeemable Non-Convertible Debentures (NCDs). This investment opportunity provides individuals and institutions with a chance to earn stable returns while investing in a well-established financial institution. In this blog, we will explore the issue structure of IIFL Finance Limited NCDs and delve into the company's financial performance in a tabular format.
Issue Structure:
The issue structure for IIFL Finance Limited NCDs is as follows:
- Issuer : IIFL Finance Limited NCD
- Instrument : Secured Redeemable Non-Convertible Debentures (NCDs)
- Issue Opens on : Friday, June 09, 2023
- Issue Closes on : Thursday, June 22, 2023
- Issue Size : Rs. 300 Cr with an option to retain oversubscription up to Rs. 1200 Cr aggregating up to Rs. 1500 Cr.
- Issue Price / Face Value : Rs. 1,000/- per NCD
- Minimum Application : Rs. 10,000/- (10 NCDs) and in multiples of Rs. 1,000/- (1 NCD) thereafter.
- Credit Rating : "CRISIL AA/Stable" by CRISIL and "ICRA AA/Stable" by ICRA
- Registrar : Link Intime India Private Limited
- Listing : The NCDs are proposed to be listed on BSE and NSE
Category Allocation :
- Category I - Institutional: 10%
- Category II - Non-Institutional: 10%
- Category III - Retail: 40%
- Category IV: 40%
Mode of Allotment: Compulsorily in dematerialized form.
Allotment: First Come First Serve Basis
Depositories: NSDL and CDSL
Series and Tenor :
The NCDs are available in various series with different tenors. The following table presents the series, tenor, coupon rates, and maturity amounts:
| Specific Terms for Each Series of NCDs |
| Series |
I |
II |
III |
IV |
V |
VI |
VII |
| Frequency of Interest Payment |
Annual |
Cumulative |
Annual |
Cumulative |
Monthly |
Annual |
Cumulative |
| Type of Instrument |
Secured Redeemable Non-Convertible Debentures |
| Minimum Application |
Rs. 10,000 (10 NCDs) across all Series |
| Face Value/ Issue Price |
Rs. 1,000 |
| In Multiples of thereafter (Rs.) |
Rs.1,000 (1 NCD) |
| Tenor |
24 Months |
24 Months |
36 Months |
36 Months |
60 Months |
60 Months |
60 Months |
| Coupon (per annum) |
8.35% |
NA |
8.50% |
NA |
8.65% |
9.00% |
NA |
| Effective Yield (per annum) |
8.34% |
8.35% |
8.49% |
8.50% |
8.99% |
8.99% |
9.00% |
| "Amount (Rs. / NCD) on Maturity for Category I II & III IV" |
Rs. 1000 |
Rs. 1,174.25 |
Rs.1000 |
Rs. 1,277.60 |
Rs.1000 |
Rs.1000 |
Rs 1,539.35 |
| Put/Call Option |
NA |
Note: *The interest will be paid annually, but the effective yield is slightly lower due to compounding.
Company Financials:
Let's take a look at IIFL Finance Limited's financial performance over the past three years:
|
Period Ended
|
Total Assets
|
Total Revenue
|
Profit After Tax
|
Net Worth
|
|
31-Mar-20
|
34373.41
|
4926.12
|
503.47
|
4667.66
|
|
31-Mar-21
|
40666.92
|
5989.69
|
760.81
|
5265.75
|
|
31-Mar-22
|
45910.18
|
7006.28
|
1188.25
|
6279.76
|
Conclusion : IIFL Finance Limited's NCDs offer investors a secure and lucrative investment opportunity. With a strong credit rating and an established presence in the financial market, the company has showcased consistent growth in its financial performance. The tabular representation of the issue structure and company financials provides a clear overview of the investment opportunity and the financial health of the company.
Note : *It's important to conduct thorough research and consult with a financial advisor before making any investment decisions. The information provided in this blog is for informational purposes only and should not be considered as financial advice.
Piyush Prajapati
5 Jun, 2023