According to IIFL Finance Vice President Sreekant Rameela, the company will raise up to Rs 1,500 crore through a public offering of secured redeemable Non-Convertible Debentures (NCDs) for business expansion and capital augmentation.
Together with IIFL Securities Associate Director P. Manohar, Sreekant stated at a press conference that the public offering of IIFL NCDs began today and will end on June 22, 2023.
The starting bid for it is Rs 300 crore. He added that the business has the option to keep an oversubscription of up to Rs 1,200 crore.
According to the Company VP, the IIFL bonds have an annual effective yield of 9% for a tenor of 60 months and a coupon rate that starts at 8.35% for 24 months.
According to him, the NCDs are offered in terms of 24 months, 36 months, and 60 months. Their face value is Rs 1,000, and the minimum application amount is Rs 10,000 for all categories.
The NCDs will be listed on the BSE and NSE, and the allocation will be made on a first-come, first-served basis.
CRISIL Ratings and ICRA have assigned the credit rating an AA. According to Sreekant, Moody’s raised IIFL Finance’s rating in Q4 of FY23 from B2 to B1 (stable).
According to him, IIFL Finance meets the credit needs of underserved populations through a strong physical presence of over 4,000 branches throughout India and a well-diversified retail portfolio.
According to the company vice president, as of March 31, 2023, IIFL Finance’s loan assets under management were estimated to be worth approximately Rs 64,638 crore. Almost 95% of the book is made up of small-ticket retail loans.
The $400 million in dollar bonds that IIFL Finance properly repaid in April were acquired through medium-term notes in February 2020, he added.
Manohar claimed that although we have grown by almost 2% annually, last year’s loan book was at Rs 64,638 crore, and this fiscal year we anticipate growth of between 25% and 26%.
He claimed that gold and housing loans accounted for the majority of the total loan book (75%), and that new branches are being opened every year to increase the availability of gold loans.
With a Gross NPA of 1.8% and a Net NPA of 1.1%, he asserted that IIFL Finance has consistently kept its level of non-performing assets low over the course of its operations.
The Associate Director added that as of March 31, approximately 73.53 percent of the company’s consolidated loan book is secured by sufficient collateral, helping to further reduce risks.
IIFL Finance reported a profit after tax in FY23 of Rs 1,607.5 crore, an increase of 35% from the previous year.