By Vivek Kotian Mob: 00919820310487 E-mail: firstname.lastname@example.org
India Infoline Finance Limited (IIFL) is opening on September 5, 2012, a Public Issue of Un-Secured Redeemable Non-Convertible Debentures of face value of Rs 1,000 each (“NCDs”) aggregating up to Rs500 crores including green-shoe option. The Bonds will be in the nature of subordinated debt and will be eligible for Tier-II capital. The issue is on first come first serve basis and therefore depending on response, it can close quicker than official closing date of September 18.
If you want to gift it to your ageing parents, consider monthly income option of Rs1,062.5/- per month on Rs1 lakh and if you want to gift it to your young children, consider cumulative option where your Rs1 lakh invested now, will fetch Rs2.05 lakh after 6 years. IIFL 12.75%- 6 year bonds have all options to take your interest monthly, yearly or accumulate over 6 years. The yield on redemption works out highest in monthly option at 13.52% p.a.
The bonds will be listed on National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”) and minimum application amount is Rs 5,000. The bonds have been rated ‘[ICRA]AA- (stable)’ by ICRA, and ‘CRISIL AA-/Stable’ by CRISIL. The above ratings indicate high degree of safety for timely servicing of financial obligations and these instruments carry very low credit risk. The lead managers to the proposed public issue of bonds include Axis Bank and SBI Capital Markets.
IIFL is RBI registered NBFC and a subsidiary of India Infoline Limited, a well known broking and wealth management company. IIFL gives only secured loans such as Mortgage loans, Gold loans, medical equipments loans, loans against shares etc. The consolidated loan book was around Rs6750 crores as on March 31, 2012. Non Performing assets as on March 31, 2012 were less than 0.5%, much lesser than the industry average. IIFL has presence all across India with over 1300 branches and more than 6000 employees.
There are three investment options:
Option I (Monthly interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is monthly and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 13.52% per annum.
Option II (Annual interest payment): The redemption date is 72 months from the deemed date of allotment and the coupon rate is 12.75% p.a. The interest payment frequency is annual and the face value plus any interest that may have accrued is payable on redemption. The effective yield on this option is 12.75% per annum.
Option III (Redemption premium): NCDs will be redeemed at Rs 2,054.50 at the end of 72 months from the deemed date of allotment. The effective yield on this option is 12.75% per annum.
The lead managers to the proposed public issue of NCDs are Axis Bank Limited, SBI Capital Markets Limited, Edelweiss Financial Services Limited, Trust Investment Advisors Private Limited and India Infoline Limited (only for marketing of the Issue), while the Co-lead managers to the Issue are RR Investors Capital Services (P) Limited and Karvy Investor Services Limited. The Prospectus is available on the website of the Company at www.iiflfinance.com; and websites of NSE and BSE at www.nseindia.com; www.bseindia.com respectively and on the respective websites of the Lead Managers at www.axisbank.com, www.sbicaps.com, www.edelweissfin.com, www.trustgroup.co.in, www.iiflcap.com, and Co-Lead Managers at www.rrfinance.com/rrfcl.com and www.karvy.com.
About India Infoline Finance Limited
India Infoline Finance Limited, a subsidiary of India Infoline Limited, is registered with Reserve Bank of India as a non-banking finance company. It offers a broad suite of lending and other financial products to both retail and corporate clients. The Company’s products include Mortgage loans (which includes Housing Loans and Loans against Property), Capital Market financing (including Loans against Securities, Promoter Funding, Margin Funding, IPO financing and other structured lending transactions), Gold loans(which includes finance against security of mainly used gold ornaments) and Healthcare financing (which includes finance for medical equipments and project funding in the healthcare sector).
The consolidated loan book has witnessed a CAGR of 63.82% over the last four years and stands at Rs 67.46 bn as on March 31, 2012. Mortgage Loans accounted for 44.70% of the consolidated Loan Book, Capital Market Finance accounted for 11.86% of the consolidated Loan Book and Gold Loans accounted for 41.07% of the consolidated Loan Book. Health Care Finance is a recent product which has been introduced in FY 2011. Net NPA as on March 31, 2012 was 0.40% on a consolidated basis.
As on March 31, 2012 the Company’s capital adequacy ratio, on a standalone basis, stood at 17.86%, as compared to a minimum capital adequacy requirement of 15% stipulated by RBI for FY11.
Over the past several years, the Company has expanded its presence. As of 31 March, 2012 it has a total of 1,323 branches and employee strength of 6,094.
India Infoline Finance Limited’s promoter, India Infoline Limited, is a financial services organization having presence across India. The global footprint extends across geographies with offices in New York, London, Geneva, Hong Kong, Singapore, Dubai, Mauritius and Colombo. It is listed on BSE and NSE. IIFL Group’s services and products include retail broking, institutional equities, commodities and currency broking, wealth advisory, credit & finance, insurance broking, asset management, financial products distribution & investment banking. The product/ services portfolio of IIFL caters to the diverse investment and strategic requirements of retail, institutional, corporate and affluent clients.
Disclaimer: India Infoline Finance Limited (“Issuer” or “the Company”) , has proposed to offer public issue of Un-Secured Redeemable Non-Convertible Debentures through Draft Prospectus filed with NSE, BSE and Securities and Exchange Board of India (for record purposes). The Prospectus is available on the website of the stock exchanges at www.nseindia.com and www.bseindia.com and the respective websites of the Lead Managers at www.axisbank.com, www.sbicaps.com, www.edelweissfin.com, www.trustgroup.co.in, www.iiflcap.com, and Co-Lead Managers at www.rrfinance.com/rrfcl.com and www.karvy.com. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Prospectus and special attention is drawn to the risk factors contained therein.
“It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer clause of the BSE Limited.”
“It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer clause of the NSE”.