IIFL NCD issue tranche 1 opened in 2021 will Double your money in 87 months with this Brickwork AA+/Negative rating bond
The Tranche I of IIFL bond 2021 Issue shall remain open for subscription on working days from 10 a.m. to 5 p.m. (IST) during
the period stated above, except that this Tranche I Issue may close on such earlier date or extended date as decided by the Board of Directors of our Company or the Finance Committee, thereof, subject to relevant approvals.
In the event of an early closure or extension of this Tranche I Issue, our Company shall ensure that notice of the same to the prospective investors through an advertisement in a daily national newspaper with wide circulation by such earlier or initial date of Issue closure. On the Tranche I Issue Closing Date, they will accept the Application Forms only between the Stock Exchanges may permit 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended time.
Table of Contents
IIFL finance Overview:
- IIFL Finance Limited (“IIFL” or the “Company”) is an Important Non-deposit accepting Non-banking Financial Company (“NBFC-ND-SI”) registered with the RBI, catering to the credit requirements of a diverse customer base with its plethora of products;
- Company is offerings home loans, gold loans, business loans and loans against property and medium and small enterprise financing, micro finance, construction and real estate finance and capital market finance; catering to both retail and corporate clients;
- IIFL Home Finance Limited and Samasta Microfinance Limited are subsidiaries of the Company.
IIFL Bonds Issue Highlights:
|Issue Opens on||3rd March 2021|
|Issue Closes on||23rd March 2021 *|
|Registrar||Link Intime India Pvt Limited|
|Allotment||First Come First Served Basis|
|Listing On||BSE Limited and National Stock Exchange of India Limited|
|Issue Price||₹ 1,000 per NCD|
|Face Value||₹ 1,000 per NCD|
|Minimum Application||₹ 10,000/- only|
|Issue Size||₹ 10,000 million (₹ 1000 cr)|
|Nature||Subordinated Redeemable Bonds|
|Issuance Mode||In dematerialised form only|
|Credit Ratings||CRISIL AA/Negative and Brickwork AA+/Negative|
Specific terms for each unit of the iifl NCD issue:
|Nature of Indebtedness||Unsecured||Unsecured||Unsecured|
|Frequency of Interest payment||Annual||Monthly||At- Maturity|
|Face Value / Issue Price (Rs /NCD)||1000||1000||1000|
|Tenure (in months)||87 Months||87 Months||87 Months|
|Coupon (% per annum) for all categories||10%||9.6%||NA|
|Effective Yield (% per annum) for all categories||10%||10.03%||10.03%|
|Amount(Rs /per NCD) on Maturity||1000||1000||2000|
Vigorous Growth in lending business
As at December 31, 2020 and March 31, 2020, consolidated Assets Under Management of IIFL were Rs. 42,264.10 Cr and Rs. 37,951.13 Cr respectively. The Company has maintained a consistently low level of NPAs over the years of operation and continue to focus on maintaining excellent quality of assets with GNPA of 1.61% and NNPA of 0.77% as a percentage of our merged Loan Book as on December 31, 2020. As on December 31, 2020, 82.58% of the Company’s merged Loan Book is backed with adequate collaterals which helps mitigate risks further.
Why you should invest?
• IIFL NCD tranche-1 is available at a highest effective yield of 10.03% p.a. for monthly and at maturity series with a tenor of 87 months. Effective yield of 10% in case of annual coupon series
• Tenor and frequency – Tenors of 87 months available with various interest payment options like monthly, annually and at maturity
• Liquidity – According to IIFL, bond will list on BSE and NSE. (they designate BSE as Stock Exchange)
• Trading in iifl ncd bond tranche-1 will be available in demat form only
• Taxation – There will be no TDS liability since the holding will be in demat mode
• Safety – Instrument rated AA/Negative rating is considered having high safety regarding timely servicing of any financial obligations if arises. Such debt instruments carry very low credit risk.
Allocation percentage to various categories
This is the allocate percentage reserved for the respected category.
|Category I||Institutional Portion||10% of the Issue Size|
|Category II||Non-Institutional Portion||10% of the Issue Size|
|Category III||HNI Investors Portion||40% of the Issue Size|
|Category IV||Retail Investors Portion||40% of the Issue Size|
Investor Categories allowed for investment:
Category I for iifl ncd issue (QIB / Institutional Investors)
There are the qualifying investors under category I for these bonds:
• Public financial institutions, scheduled commercial banks, Indian multilateral and bilateral development financial institutions which may invest in the NCDs.
• Provident funds and pension funds with a minimum corpus of Rs.250 million, superannuation funds and gratuity funds, which may invest in the NCDs;
• Alternative Investment Funds, subject to investment conditions applicable to them under the SEBI (Alternative Investment Funds) Regulations, 2012;
• Resident Venture Capital Funds registered with SEBI;
• Insurance companies registered under the IRDAI;
• Industrial development corporations under state government;
• Any Group Insurance funds set up and managed by the army, navy, or air force of the Union of India;
• Any Group Insurance funds set up and managed by the Department of Posts, the Union of India;
• Systemically Important NBFCs registered with the RBI and having a net-worth of more than Rs. 5,000 million as per the last audited financial statements;
• National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India; and
• Any Mutual funds registered with SEBI.
Category II for iifl ncd issue (Corporate / Non Institutional Investors)
• Companies within the meaning of Section 2(20) of the Companies Act, 2013; statutory bodies/ corporations (and societies registered under the applicable laws in India and allowed to invest in the NCDs;
• Co-operative banks and regional rural banks;
• Trusts including public/private charitable/religious trusts which may invest in the NCDs;
• Scientific and/or industrial research organisations, which may invest in the NCDs;
• Partnership firms in the name of the partners;
• LLPs formed and registered under the Limited Liability Partnership Act, 2008 (No. 6 of 2009); and
• Association of Persons/ other incorporated or unincorporated body of person.
Category III for iifl ncd issue (HNI Investors)
• High net-worth individual investors, resident Indian individuals and HUF (Hindu Undivided families) applying through the Karta for an amount aggregating to above Rs. 10,00,000 across all options of NCDs in this Issue.
Category IV for iifl ncd issue (Retail Individual Investors)
• Retail individual investors, resident Indian individuals and HUFs through the Karta applying for an amount aggregating up to and including Rs. 10,00,000 across all Series of NCDs in this Tranche
I Issue and shall include Retail Individual Investors, who have submitted a bid for an amount not more than ₹200,000 in any of the bidding options in the Issue (including HUFs applying through their Karta and does not include NRIs) though UPI.
FAQ on IIFL NCD Tranche-I
1. What is the iifl ncd Tranche 1 issue size?
Ans: Base issue size of ₹ 1,000 million, with an option to keep oversubscription up to ₹ 9,000 million aggregating up to ₹ 10,000 million through Tranche 1 Issue which is within the shelf limit of Rs.50,000 million.
2. What is the credit rating for the NCDs?
Ans: Rating of the iifl NCDs is CRISIL AA/Negative (marked as CRISIL Double A rating with Negative outlook) and BWR AA+/Negative (marked as BWR Double A Plus with Negative outlook). We consider the aforesaid rating shows that instruments with this rating to have high safety regarding timely servicing of financial obligations and carry very low credit risk.
3. What is the face value of this iifl NCD Tranche-1?
Ans: Face value of iifl NCD Tranche-1 is Rs. 1,000/- per NCD.
4. What is the recurrence of interest payment?
Ans: IIFL NCD holder will receive an interest in the mode of Annual, Monthly and At maturity options.
5. What is the minimum application size for iifl ncd?
Ans: ₹ 10,000 (10 NCDs) across all Series collectively.
6. Can anyone without demat invest in these NCDs?
Ans: No. The IIFL Finance shall issue the NCDs in dematerialized form in terms of Regulation 4 (2) (d) of the SEBI Debt Regulations. You can open your demat account in 5 minutes here.
7. Can one apply iifl ncd on joint names?
Yes. You may make applications in single or joint names (not exceeding three). With joint applications, it will make all payments out in favour of the first Applicant.
8. On which exchange NCDs will list?
Ans: Listing of the iifl ncd will be on BSE & NSE. BSE shall be the Designated Stock Exchange for the Issue.
9. What is the issue dates of iifl ncd?
IIFL NCD Tranche I Issue dates*
Tranche I Issue opens March 03, 2021
Tranche I Issue closes on March 23, 2021
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