Issue Size and Structure:
Base Issue Size (Green Shoe Option): ₹200 crore
Oversubscription Option: ₹800 crore
Total Issue Size: ₹1000 crore
Important Dates :
Issue Opens: Monday, June 3, 2024
Issue Closes: Friday, June 14, 2024
Investment Requirements:
Minimum Application: ₹10,000 (10 NCDs)
Bid Lot: 10 NCDs and multiples of 1 NCD thereafter
Interest and Tenor:
Interest Payment Frequency: Monthly and Annual
Tenor Options: 24, 36, 60 months
Highest Coupon Rate: 10.50% per annum for 60 months
Allocation Ratio:
Institutional Investors: 10%
Non-Institutional Investors: 30%
High Net-Worth Individuals: 30%
Retail Investors: 30%
Credit Ratings:
CRISIL: CRISIL AA-/Watch
ACUITE: ACUITEAA/Watch
Listing:
Exchange: BSE, NSE
| Specific Terms for Each Series of NCDs |
| Series |
I |
II |
III |
IV |
V |
VI |
| Frequency of Interest Payment |
Monthly |
Annual |
Monthly |
Annual |
Monthly |
Annual |
| Tenor |
24 Months |
24 months |
36 Months |
36 Months |
60 months |
60 Months |
| Coupon (% per annum) for NCD Holders in all Categories of Investors |
9.20% |
9.60% |
9.57% |
10.00% |
10.03% |
10.50% |
| Effective Yield (% per annum) for NCD Holders in all Categories of Investors |
9.60% |
9.60% |
10.00% |
10.00% |
10.50% |
10.49% |
| Redemption Amount (₹ / NCD) on Maturity for NCD Holders in all Categories |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
| Put/Call Option |
NA |
Company Overview :
Established in 1995, IIFL Samasta is a microfinance institution (NBFC MFI) in India offering innovative and affordable financial products to women registered as members and organized in a Joint Liability Group. IIFL Samasta is a subsidiary of IIFL Finance Limited.
The company offers loans specifically designed for underserved individuals who do not have access to traditional banking services. These loans include Income Generating Loans (IGL) for starting a new business or expanding an existing business, top-up loans, real estate loans, micro-enterprise loans and lifestyle and family welfare loans. The latter offer financing for products that can improve their living conditions, e.g. loans for dairy cattle, sanitation and hygiene loans and loans for the purchase of everyday items such as cook stoves, water purifiers, cell phones and solar lights.
Key Strengths:
(I)Product offerings across the entire customer life-cycle - We offer a diverse product suite that caters to the entire customer life cycle of our customers. We provide loans that are relevant for critical needs of our customers throughout their lifespan, which we believe helps in generating loyalty amongst our existing customers and in attracting new customers.
(II) Focus on customer engagement – we follow a predominantly fortnightly collection model, which enables a high degree of customer engagement. Whilst the majority of our customers are on a fortnightly collection model, we alsooffer a monthly collection model based on their needs. We believe that the high customer engagement achieved via the frequency of our collections and fortnightly meetings, and interactions with our customers is an important factor in ensuring customer repayment and keeping our credit costs at optimal levels.
(III) Customer support and timely grievance resolution – In line with our customer-centric approach, we have enhancedour customer support capabilities. We have established an in-house contact center to ensure timely resolution andcomprehensive assistance for any customer queries or concerns. This dedicated support system reinforces ourcommitment to delivering excellent customer service at every touch point.
Overseas investors bought about $358 million in bonds on Monday, marking the highest amount in two months and extending a seven-day streak of purchases, according to data compiled by Bloomberg. This brings net purchases for May to $709 million, following $1.9 billion in sales in April due to a global risk-off that prompted outflows from emerging markets.
India has been a focal point for global investors this year, with the upcoming inclusion of the nation’s debt in JPMorgan’s flagship index in June signaling its increasing influence. The US bank estimates inflows could reach as much as $25 billion. Additionally, a reduction in short-term borrowings and a record dividend payout by the central bank have enhanced the attractiveness of local bonds.
Conclusion
The Tranche II NCD issue by IIFL Samasta Finance Limited represents a secure investment opportunity with attractive returns. The company’s strong financials, high-quality asset base, and robust risk management frameworks make this NCD offering a compelling choice for various investor categories.
Disclaimer :Investments in debt securities/NCDs are subject to risks including delay and/or default in payment. Read all scheme related documents carefully.
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