Thursday, Oct 5 2023 | Time 02:18 Hrs(IST)
Business Economy

IIFL Finance to raise Rs 1500 cr through public issue for business growth

Hyderabad, June 9 (UNI) IIFL Finance, a leading non-banker lender will raise up to Rs 1,500 crore through a public issue of secured redeemable Non-Convertible Debentures (NCDs) for the purpose of business growth and capital augmentation, its Vice President Sreekant Rameela said on Friday.
Addressing a press conference along with IIFL Securities Associate Director P. Manohar here, Sreekant said the public issue of the IIFL NCDs opened today and will close on June 22, 2023.
It has a base offer of Rs 300 crore. However, the company has a green shoe option to retain an over-subscription of up to Rs 1,200 crore, he said.
The Company VP said the IIFL bonds offer a coupon rate starting at 8.35 per cent for 24 months and the highest effective yield of 9 per cent per annum for a tenor of 60 months.
The NCDs are available in tenors of 24 months, 36 months and 60 months, he said the face value of the NCDs is Rs 1,000 each and the minimum application size is Rs 10,000 across all categories.
The allotment will be made on a first come first served basis and the NCDs will be listed on the BSE and NSE.
The credit rating has been AA by CRISIL Ratings and ICRA. In Q4 of FY23, Moody's upgraded IIFL Finance's rating from B2 to B1 is (stable), said Sreekant.
IIFL Finance, through a strong physical presence of over 4,000 branches across India and a well-diversified retail portfolio, caters to the credit needs of underserved populations, he said.
The Company Vice President said IIFL Finance’s Loan Assets under Management is around Rs 64,638 crore as on March 31, 2023 and mostly 95 per cent of the book is retail which is focused on small-ticket loans.
In April, IIFL Finance duly repaid $ 400 million worth of dollar bonds, raised through medium-term notes in February, 2020, he added.
Manohar said that our growth in every year was nearly 26 per cent, however in the last year, our loan book stood at Rs 64,638 crore and expected to between 25-26 per cent growth in this fiscal also.
Of the total loan book, the major contribution of 75 per cent was from gold and housing loans, he said that we are opening branches every year to expand its reach in gold loans.
IIFL finance has consistently maintained a low level of NPAs over the years of operations and continues to focus on good quality of assets with Gross NPA of 1.8 per cent and Net NPA of 1.1 per cent, he claimed.
As on March 31, about 73.53 per cent of the company’s consolidated loan book is secured with adequate collaterals which help to mitigate risks further, the Associate Director added.
In FY23, IIFL Finance reported a profit after tax of Rs 1,607.5 crore, a 35 per cent year-on-year growth.
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