IIFL Home Finance Launches Public Issue Of Its Unsecured NCDs

IIFL Home Finance,  an entity of the IIFL group has launched their public issue of Unsecured Subordinated Redeemable Non-Convertible Debentures on Tuesday, July 6. The issue will close on July 28, 2021. 

The Tranche I Issue includes a Base Issue Size for an amount of Rs 100 crore with an option to retain oversubscription of up to Rs 900 crore aggregating up to Rs 1,000 crore. The face value of the issue is fixed at Rs 1000/NCD with a coupon rate ranging from 9.60 - 10.5 per cent with a tenor of 87 months and a frequency of Monthly, Annually, and at Maturity. 

The housing company has proposed to use 75 per cent of the net proceeds from the issue for onward lending, financing, and repayment/prepayment of principal and interest of existing borrowings and 25 per cent for general corporate purposes. It has allocated a share of 10 per cent for Institutions, 10 per cent for Non-institutions, 40 per cent for HNIs, and 40 per cent for retail investors. The issue is being rated as CRISIL/AA Stable by CRISIL Ratings Ltd. and BWR/ AA+/Stable by Brick Work Ratings India.

Addressing the press, the company claimed that there have been no defaults or delays in any sort of obligations amid roller coaster and difficult times in the recent years.

"We don't have any record of default or delay in any obligations even in the difficult times," said Nirmal Jain, Chairman of the IIFL Group in a press meet. 

Going ahead, the company aims to tap opportunities in the lending sector with a rise in urbanization in the last two decades and also a great demand after the government's agenda of housing for all, proposed in 2015. 

"We have seen a great demand for urbanization in the last couple of decades and we look forward to aligning ourselves with the same," said Monu Ratra, ED & CEO, IIFL Home Finance Limited.

Tracking the numbers of the company, the company's AUM(Asset Under Management) has increased from Rs 9769.32 crore as of March 31, 2017, to Rs 20,693.69 crore as of March 31, 2021, at a CAGR of 20.64 per cent.