India Infoline ltd’s non banking financial company (NBFC), India Infoline Finance ltd on Wednesday announced the launch of secured redeemable non-convertible debentures (NCD).
The NCDs will be of three or five years investment modes and the issue will open on September 17 and close on October 4. Face value of the NCDs will be Rs 1,000 each with the basic issue size of Rs 525 crore with an option to retain oversubscription up to Rs 525 crore. BK Singh, President and CEO of IIFl said, “This is the third bond issue and we expect an overwhelming response. The company aims to raise Rs 1,050 crore which be would be deployed in core lending business.”
The NCDs have an option of monthly and annual interest payment and the yield works out to 12.68 per cent p.a. for the monthly interest option and 12 per cent p.a. for the annual interest option. The face value of NCD is Rs 1,000 and minimum application is Rs 5,000 (5 NCDs). The NCDs will be listed on National Stock Exchange of India limited (“NSE”) and BSE limited (“BSE”) and will have a tradable lot size of 1 NCD.
Prior to this, IIFl issued NCDs in 2011 and 2012 had received good response. Back in 2011 the company was able to raise nearly Rs 400 crore while in 2012, the company bagged Rs 575 crore through the issue. Speaking on the company’s focus in the coming days, Singh said, “Going forward we are going to focus on our mortgage business. We expect to raise real estate lending’s share to 65 per cent of the total revenue.”