The face value of India Infoline Finance’s unsecured redeemable Non-Convertible Debentures of Rs 500 crore is fixed at Rs 1,000. The issue opens on September 5 and closes on September 18.
The NCD issue will raise Rs 250 crore with an option to retain an over-subscription of an additional Rs 250 crore.
The NCDs will be in the nature of subordinated debt and will be eligible for Tier-II capital, said IIFL in a press release. This means, in the case of default, creditor with subordinated debt would not get paid out until after the senior debt-holders were paid in full.
The issue has three investment options and the yield on redemption is 13.52 per cent (monthly interest payment), 12.75 per cent (annual interest payment) and 12.75 per cent (redemption premium) a year respectively.
“We have been successful in maintaining low net NPA of 0.4 per cent through our robust credit appraisal processes and internal controls.
“I think these bonds present a win-win proposition for both investor and company, as on the one hand they offer attractive interest yield, on the other hand, they will help the company to boost its capital adequacy,” said Nirmal Jain, Founder — Chairman, India Infoline Group.
The minimum application amount is Rs 5,000 (five NCDs)
The lead managers are Axis Bank Ltd, SBI Capital Markets, Edelweiss Financial Services, Trust Investment Advisors Private and India Infoline (only for marketing of the issue), while the co-lead managers to the issue are RR Investors Capital Services (P) Ltd and Karvy Investor Services Ltd.